Israeli economy in ‘serious danger’: Washington Post

By Al Mayadeen English
Source: The Washington Post
27 Sep 2024 10:09
1 Shares

Over the past year, tens of thousands of businesses in "Israel" have shut down amid the war on Gaza and the aggression in Lebanon.

Listen

Israeli settlers buy fruits and vegetables in a local market in Haifa, occupied Palestine, on August 16, 2024. (AP)

In a new report, The Washington Post highlighted the significant challenges confronting "Israel's" economy amid Tel Aviv's aggression on Lebanon and Gaza.

"Israel" has experienced a downgrade in its credit rating and a sharp contraction in its gross domestic product. Tens of thousands of businesses have shut down, and an increasing number of jobs are being outsourced. Many Israeli reservists have had to pause their careers or struggle to balance them with military service commitments.

The construction and agriculture industries have also faced significant challenges. According to the Central Bureau of Statistics, tourism has plummeted by over 75%, closing many shop fronts.

On the other hand, military spending has at least doubled, with the Central Bank warning that the ongoing war could cost $67 billion through 2025. This prediction was made prior to "Israel’s" recent escalation in Lebanon and the mobilization of two reserve brigades to the northern front on Wednesday.

“The economy is in serious danger unless the government wakes up,” Israeli economist Dan Ben-David, who heads the Shoresh Institution for Socioeconomic Research, told The Washington Post.

“Right now they are completely disconnected from anything that is not war … and there is no end in sight,” he stressed.

'The mother of all wars'

Ben-David noted that officials in the Finance Ministry, currently headed by Israeli Finance Minister Bezalel Smotrich, are feeling frustrated with a government they perceive as prioritizing the appeasement of its supporters over strengthening the economy. He mentioned that he has urged them to remain in their positions despite these challenges.

“They are the last public dam we have,” he said. “The politicians are in la la land.”

Dany Bahar, a senior fellow at the Center for Global Development, told The Washington Post that the Israeli economy typically demonstrates resilience during wars.

However, he remarked, “But this war seems like the mother of all wars.” He further noted that this situation is costly, emphasizing that “the money has to come from somewhere.”

This is happening as Hezbollah intensified its firepower against Israeli military bases and positions in northern occupied Palestine, achieving precise and direct hits in defense of Lebanon and its people while simultaneously supporting Gaza and its resistance efforts.

As the Israeli occupation continues to claim that it is "winning" its war on Gaza, more data emerge by the day to prove otherwise.

Not only have reports indicated "Israel's" loss on battle fronts with the Axis of Resistance, but recently they have further shed light on how the… pic.twitter.com/uywA84VB5r
— Al Mayadeen English (@MayadeenEnglish) August 24, 2024

Simultaneously, Israeli media are cautioning against underestimating Hezbollah's capabilities, highlighting the potential economic and military repercussions that could arise from the escalation of hostilities. Reports indicated that the Israeli occupation is actively attempting to downplay and obscure the extent of the damages and losses it is suffering in the North.