Israel in Turmoil: What Economic Challenges Does the Zionist Regime Face Following Operation Al-Aqsa Storm?
The Operation Al-Aqsa storm is being viewed as the most significant security, military, and intelligence setback for the Zionist regime. On October 7, Hamas executed a sudden and comprehensive assault that caught the Zionist regime off guard, dealing a severe blow to its military infrastructure. Despite the numerous warnings issued by Zionist authorities, over four months have elapsed, and the Zionists find themselves embroiled in the ongoing Gaza conflict, with Palestinian resistance forces persisting in their opposition against the Zionist army. The Zionists have incurred substantial losses and faced significant casualties as a result of the conflict in Gaza. However, it is essential to recognize that the military and security aspects do not represent the sole dimensions of this war. There is another facet to this conflict, which, contrary to conventional warfare, may have enduring implications that extend beyond the cessation of hostilities—the looming economic repercussions on the Zionist regime.
Recent data released on Monday revealed that the Zionist economy has been severely impacted by the all-encompassing war against the Palestinian militant group Hamas in Gaza. The conflict has halted the economic progress of the Zionist regime, particularly due to the extensive mobilization of reserve forces and the displacement of tens of thousands of settlers from border towns near Gaza and Lebanon in response to continuous rocket attacks by Hamas and Hezbollah. Prior to the cross-border incursion by Hamas on October 7, Israel was on course for 3.5% economic growth in 2023. However, the offensive launched by Palestinian resistance forces dramatically altered the economic trajectory for the Zionists.
Experts have expressed that the economic aftermath of the war, as indicated by data from the Central Bureau of Statistics of the Zionist regime, is more severe than initially anticipated. Private spending plummeted by 26.3%, exports declined by 18.3%, and investments, particularly in residential construction, saw a staggering 67.8% decrease. The construction sector is grappling with a shortage of labor due to military enlistments and the reduction of Palestinian workers. Concurrently, government spending, primarily attributed to war-related expenses and compensations for affected businesses and households, surged by 88.1%. Despite a sharp decline in GDP during the period from October to December, the Israeli economy recorded 2% growth for the entire year. Nonetheless, prior to the October 7 attack, a 3.5% growth had been anticipated. Additionally, the Fortune website reported a 20% decline in Israel's economy.
Opponents of Benjamin Netanyahu, the Prime Minister of the Zionist regime, argue that the economic downturn began before the resistance attack, citing the widespread protests against Netanyahu's judiciary reforms as a contributing factor. Unlike the swift arms assistance provided by Western nations and the United States to support the Zionist regime in its conflict against Palestinian resistance forces, the internal collapse of the Zionist economy would present an insurmountable challenge for any government seeking to ameliorate the economic crisis. The repercussions of the Gaza conflict have proven to be more profound and far-reaching than initially envisioned.
A report by Zionist website The Marker underscored the economic ramifications of the ongoing conflict, stating, "Every passing day makes it increasingly evident that the macroeconomic fallout of the Gaza war for Israel will be far more severe and painful than that of the Corona crisis." Anticipated economic damages include a surge in the cost of living due to the depreciation of the shekel, substantial cuts in social services, and the suspension of crucial reforms.
Reflecting on the current economic landscape and the failure of the Zionist regime's military objectives in Gaza, it is evident that the regime must brace itself for a new economic crisis should the conflict conclude without achieving its intended outcomes. This forthcoming challenge may prove to be more daunting and distressing for the Zionists than the events of October 7. The dark clouds of economic distress loom over the Zionist regime, foreshadowing an impending economic storm in the occupied territories.
