The Israeli government has borrowed billions in recent weeks through private deals. This aims to fund the war in Gaza, as reported by the “Financial Times.”
Since the Gaza war began, Israel has raised over $6 billion from international debt investors. This includes about $5 billion through three new bond issues and six increases in existing dollar and euro-denominated bonds. Plus, over $1 billion was raised through a U.S. entity.
More than a month into the Gaza conflict, Israel’s economy is experiencing widespread shocks. The cost is a hefty $600 million per week, according to the Bank of Israel.
These costs stem from the closure of many schools and the evacuation of about 144,000 workers from areas near the Gaza and Lebanon borders. Additionally, about 350,000 reserve soldiers, or 8% of the workforce, were called up to serve in the Israeli military.
The Gaza conflict’s impact on Israel’s economy highlights the broader implications of military engagements. The substantial borrowing indicates the financial strain of sustained conflict, not just for the government but also for the general populace. Such economic pressures can lead to long-term consequences, including increased public debt, higher taxes, or reduced public services. The situation underscores the complexities of geopolitical conflicts and their far-reaching economic effects, often extending beyond immediate battlefields. Understanding these dynamics is crucial for comprehensively grasping the impacts of international conflicts.
The repeated conflicts in Gaza, notably between Israel and the Palestinian militant groups including Hamas, have had profound and multifaceted impacts. The region, characterized by its high population density, has experienced significant humanitarian crises as a result of these conflicts. The wars have led to substantial loss of life, widespread injuries, and the displacement of large numbers of people. Gaza’s infrastructure has been severely damaged, affecting vital facilities such as hospitals, schools, and utilities, exacerbating the already challenging living conditions. The blockades and restrictions imposed by Israel and Egypt, citing security concerns, have further compounded the economic and social hardships, leading to high unemployment rates, poverty, and limited access to essential services.
