Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Palestinian media: 'Israel' launches two airstrikes on eastern Khan Younis, Gaza.
Al Mayadeen’s correspondent in Gaza: Israeli occupation forces carry out demolitions in eastern Gaza City.
Venezuelan Foreign Ministry: The National Armed Forces will remain on alert and mobilized in the face of this extremely dangerous provocation.
Venezuelan Foreign Ministry: This is not a defense exercise, but rather a military aggression aimed at turning the Caribbean into a space for violence and US hegemony.
Venezuelan Foreign Ministry: The government of Trinidad and Tobago has surrendered the country's sovereignty to act as a military colony serving US interests.
Rapid Support Forces attack El-Fasher, west Sudan.
Al Mayadeen correspondent: One martyr and one wounded in an Israeli drone attack on the town of Hafir, west of Baalbek, eastern Lebanon.
Al Mayadeen correspondent: An Israeli drone fired three missiles in the vicinity of the town of Bodai, west of Baalbek.
Reuters: The Rapid Support Forces announced that they have taken over the headquarters of the Sudanese Armed Forces in al-Fasher.
Al Mayadeen correspondent: An Israeli drone strike targeted the town of Al-Qlailah, Southern Lebanon.

War on Gaza to cost 'Israel' about 10% of 2024's GDP: Central Bank

  • By Al Mayadeen English
  • Source: News Websites
  • 18 Jan 2024 17:29
3 Min Read

The Israeli Central Bank has approved a cabinet-based budget aimed at delivering sufficient fiscal amendments that could stabilize the growing debt the occupation has collected since waging a genocidal war in Gaza. 

  • x
  • Amir Yaron, Governor of the Bank of Israel, speaks at the 24th Jacques Polak Research Conference at the International Monetary Fund on Thursday, Nov. 9, 2023 in Washington. (AP)
    Amir Yaron, Governor of the Bank of Israel, speaks at the 24th Jacques Polak Research Conference at the International Monetary Fund on Thursday, Nov. 9, 2023, in Washington (AP)

The Israeli Central Bank governor supported a cabinet-approved budget based on claims of delivering sufficient fiscal amendments that could stabilize the growing debt the occupation has collected since waging a genocidal war in Gaza. 

According to Amir Yaron, the budget would plateau public debt at an estimated 66% of the gross domestic product for the foreseen years, compared to 2023's 62%.

Speaking at the World Economic Forum, Yaron told Bloomberg TV “Steps taken to stabilize Israel’s future debt are a very important statement to the markets.” 

Referring to calculations, Yaron stated that the war on Gaza will cost the Israeli economy 10% of the 530 billion dollar GDP, and revenue will shrink by 2%.

The Israeli Central Bank also made interest cuts last month, reducing them to 4.5% when markets stabilized for a while. “We lowered the interest rate after we saw markets stabilize and inflation decelerating — it has just landed at 3%, the top of our target range,” Yaron said. 

Moreover, he added that unprecedented negative demand for construction was the primary factor for the inflation shock. Yaron stated that in case the genocide financial spillover reintensifies, the bank's monetary policy will have to be more cautious. 

"Israel's" fiscal policy: A worry for investors 

Related News

Israeli forces detain 13 Palestinians, settlers attack West Bank towns

PIJ commemorates founder on 30th anniversary of assassination

This week, another 2024 budget was tabled after investors doubted the fiscal path "Israel" was taking as it continues prolonging the genocide in Gaza. 

Previous warnings were made by the Bank of "Israel" concerning backlash from investors over the government's budget response to the war, highlighting the possibility of an increase in bond yields, the devaluation of the shekel, and the stagnation of the economy. 

However, the fiscal program approved this week implemented measurements that aim at regulating the financial repercussions of war by establishing 5% ministry budget cuts to balance out spending spikes. 

War on Lebanon can be 'lethal' to Israeli economy

Amid prolongations of the genocide in Gaza and threats of war on the northern front with Lebanon, the Israeli economy is expected to see major blows. 

A report by NPR on Tuesday detailed that the Israeli economy is enduring more difficulties now that tensions have worsened along the Lebanese border.

The NPR reports that, for instance, The Golan Heights Winery owners said that not only tourism and visitors have dwindled since the outbreak of the war, but daily operations have been disrupted as well. 

Although Hezbollah rockets haven't reached the winery location yet, the economic toll is evident. CEO Assaf Ben Dov notes that the winery's production schedule has fallen behind due to staff shortages caused by reservists being called up for active duty.

The broader economic impact depends on the settlers' decision to return. Fadlon stressed that for "Israel", the war's aftermath is not only about winning but also about restoring confidence in safety and normalcy. The financial toll is substantial, with the central bank estimating a total cost of $56 billion — nearly half of "Israel's" annual budget.

"It will affect the economy in these places in the long run in a way that could definitely be lethal," Fadlon said.

Read more: Weight of war weighing heavily on Israeli economy

  • Palestine
  • Israel
  • Israeli economy
  • Gaza
War on Gaza

War on Gaza

Most Read

From previous scenes of the Qassam Brigades targeting an Israeli D9 bulldozer with a Yassin 105 shell, east of Deir al-Balah. (Military Media of the Qassam Brigades)

US knew fatal Rafah blast cause was not Hamas op., says journalist

  • Politics
  • 20 Oct 2025
'Israel’s Digital Iron Dome: Weaponizing the web against Palestine

'Israel’s Digital Iron Dome: Weaponizing the web against Palestine

  • Technology
  • 24 Oct 2025
Abu Hamza, the spokesperson for the Al-Quds Brigades, during a speech televised on October 22, 2025 (Al-Quds Brigades Military Media)

Al-Quds Brigades' Abu Hamza mourns leaders, vows continued resistance

  • Politics
  • 22 Oct 2025
US missionary kidnapped in Niger capital, suspected taken toward Mali

US missionary kidnapped in Niger capital, suspected taken toward Mali

  • Africa
  • 23 Oct 2025

Coverage

All
War on Gaza

Read Next

All
Sheikh Naim Qassem speaks during an interview with Al-Manar TV, October 26, 2025 (Screenshot)
Politics

Hezbollah ready to face 'Israel' in case of war: Sheikh Naim Qassem

A Russian cargo train arrives at Astara Railway Wharf, March 2018 (IRNA)
Economy

Tehran, Moscow to finalize INSTC rail project next month

Iran's Parliament Speaker Mohammad Bagher Ghalibaf addresses the media after submitting his candidacy for the Islamic Republic's upcoming presidential election in Tehran on June 3, 2024 (AP)
Politics

UNSCR 2231 termination marks major win for Iran’s diplomacy: Qalibaf

ap
Politics

'Israel' killed 40 Palestinian children in West Bank since January: UN

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS