The Bank of Israel has announced that the country’s economy has suffered losses exceeding $57 billion over two years of military conflict with Gaza Strip and war-related costs linked to Lebanon. According to the bank, the losses are estimated to be equivalent to 8.6 percent of Israel’s gross domestic product between 2023 and 2025. Reports indicate that Israel’s exports to some European Union countries have declined, while trade with other countries has increased. At the same time, Israel’s war cabinet has revised the 2026 state budget and approved an additional $13 billion to cover military expenses. This assessment does not include the economic impact of the ongoing conflict with Iran, which has now entered its fourth week and has involved Israeli airstrikes and retaliatory responses from Iran. It is worth noting that Israel launched its war in Gaza in October 2023. Since then, more than 72,000 Palestinians have been killed, around 172,000 wounded, and nearly 90 percent of civilian infrastructure has been destroyed, according to reports.
