The Palestinian resistance in Gaza has exhausted the Zionist entity as the war on Gaza continues without achieving real gains for the Zionist entity in Palestine, the continuation of which will gradually break the strength of the entity’s economy.
According to Israeli Finance Minister Bezalel Smotrich, one of the most extreme ministers and a major supporter of the continuation of the war, the direct cost of the war amounts to 246 million dollars per day, and assuming that it continues for a longer period of 8 months to a year, the direct costs may reach 50 billion, or about 10%. Of the gross domestic product, under very conservative assumptions.
In the last quarter of 2023, the Israeli economy shrank at a rate of 20% - the economic growth rate decreased from 6.5% to 2%, consumer spending at a rate of 27%, import and export volume at about 42% and 18%, respectively, and investment at a rate of 67.8%, and government spending increased at a rate of 88.1%, most of which went to military spending, and Israel was forced to establish a lending fund worth 10 billion shekels "$2.7 billion" to provide grants to the private sector, which is suffering from a sharp decline in sales، Not to mention the cost of compensating business losses and guaranteeing salaries to employees.
The continuation of the war for the year 2024 also prompted the Central Bank to reduce growth expectations for the current year from 3% to 2%, and the government raised the general budget by about 19 billion dollars with an expected deficit of 6.6%, and the shekel suffered from several waves of turmoil and volatility, which prompted rating agencies to Reducing Israel's credit rating, a measure mainly due to low confidence in Israel's ability to fulfill its financial and credit obligations، It leads to strengthening restrictions on Israeli external borrowing and raising the cost of interest on borrowing.