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IsraeI’s economy in tatters after colossal losses over anti-Iran strikes
Estimates suggest that a month-long war could cost it around $12 billion, with daily military expenses averaging $725 million. Out of the daily expenses, $593 million was used for attacks and $132 million allocated for defensive measures and military mobilization.
According to the Financial Express website, the regime spent around $5 billion in the first week of its attacks on Iran, which were launched on June 13, assassinating top Iranian military commanders and nuclear scientists, as well as killing civilians.
The Wall Street Journal reported that the daily cost of anti-missile air systems for Israel ranged from $10 million to $200 million. The Israel-based Aaron Institute for Economic Policy also reported that the total cost could have reached over $12 billion had the attacks continued for a month.
According to the regime’s Tax Authority, the number of Israelis evacuating their homes in the first week exceeded 10,000, and some 36,465 people filed for compensation.
Labor shortages also worsened as tens of thousands of reservists, many from critical high-tech and industrial sectors, were mobilized.
This comes as by the end of 2024, the Gaza war had already drained Israel of over $67.5 billion, excluding significant civilian and infrastructure damages and broader economic losses, which remain difficult to quantify.
According to Liam Peacha, a senior emerging markets economist at Capital Economics, “Israel’s economy is going to be about 5% smaller over the next few years than if the war hadn’t happened.