'Israel' debt-to-GDP ratio up by 70% year-to-year
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The Israeli occupation's debt-to-GDP ratio is skyrocketing in the wake of the wars on Lebanon and Gaza, which caused a massive bleed for "Israel".
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A man works next to a damaged building near the site where a missile launched from Yemen landed in Yafa district, in Tel Aviv, occupied Palestine, Tuesday, Dec. 31, 2024 (AP)
The Israeli Finance Ministry revealed that government spending to finance the wars on Gaza and Lebanon reached approximately NIS 100 billion ($30 billion) in 2024, which starkly increased the national debt.
According to initial ministry data, the total government debt rose from NIS 1.13 trillion ($310 billion) in 2023 to NIS 1.33 trillion ($365 billion) in 2024. Consequently, the public debt-to-GDP ratio climbed from 61.3% in 2023 to 69% by the end of last year, reflecting the mounting costs of the war effort.
“The debt-to-GDP ratio in 2024 reflects the governmental response to the significant war needs, on the security and civilian fronts,” stated Finance Ministry Accountant General Yali Rothenberg. He emphasized the importance of reversing this trend despite the anticipated increase in defense spending in the coming years.
The Bank of Israel previously estimated that the total financial burden of the war, including security expenditures, civilian aid, and lost tax revenues, could amount to $70 billion between 2023 and 2025.
'Israel' acknowledges massive losses
"Israel" has reported financial losses amounting to $67 billion as a result of its ongoing genocidal war on Gaza, the Middle East Monitor (MEMO) news website mentioned on Saturday.
It highlighted that this figure includes $34 billion in direct military expenses and $40 billion in general budget losses, marking the largest economic setback in the Israeli occupation's history.
Over the past year, approximately 60,000 Israeli businesses have shut down, representing a 50% increase compared to 2023, the news website said. It added that the Israeli tourism sector has also suffered significantly, with a 70% decline in visitors leading to losses exceeding $5 billion.
Meanwhile, the construction industry reported losses of $4 billion, with more than 70 companies ceasing operations, according to MEMO.
Additionally, data revealed that one-third of the population under Israeli occupation now lives below the poverty line, with a quarter experiencing food insecurity.
The news website emphasized that these figures were disclosed just hours before a prisoner exchange and a ceasefire agreement was reached with the Palestinian Resistance Gaza.
According to the Israeli Ministry of Finance, "Israel" incurred financial losses of approximately 125 billion shekels (around $34.09 billion) since the war on Gaza began on October 7, 2023.
