The Bank of Israel announced that Israel’s economy suffered losses exceeding $57 billion over two years due to the aggression against Gaza and the costs related to the war that included Lebanon.
Bloomberg reported that the bank estimated economic losses from 2023 to 2025 at 8.6% of GDP, mainly due to the war.
According to the report, the entity’s exports to eight EU countries that had been most critical of it over the past two years have declined, while trade with some other countries has increased.
Meanwhile, the Israeli War Cabinet reviewed the 2026 budget and approved an additional $13 billion to cover military expenses.
The report does not include the economic impact of the ongoing war with Iran, which has entered its fourth week and includes Israeli airstrikes and Iranian retaliatory responses.Israeli economy
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