Despite the significant economic impact, it has become
increasingly clear that Israel’s military objectives are unlikely to be
deterred in the short term.
اضافة اعلان
Israel's genocidal war on the Gaza Strip, exceeding 100
days, has resulted in the death, loss, and injury of at least 100 thousand
Palestinians, constituting about four percent of Gaza's population. The
majority of the strip’s infrastructure and most buildings and homes have been
destroyed, and these actions are currently under review by the
International Court of Justice (ICJ) in The Hague.
On the economic front, Israel's
Gross Domestic Product (GDP), approximately $500 billion annually, has experienced a noticeable
decline. Some Israeli economic research centers estimate this to be around 2
percent in the last quarter of 2023. Additionally, the productivity and
efficiency of the Israeli workforce have negatively been impacted by the war
conditions.
This has increased pressure on the labor market, with nearly
200 thousand claims for unemployment compensation filed, further exacerbated by
the mobilization of reserve soldiers and the prevention of Palestinian workers
from working within the
Green Line-Palestine occupied in 1948.
Furthermore, Israel's economic challenges are compounded by
inflationary pressures, especially with the devaluation of the Israeli Shekel
against major currencies like the US dollar. The ongoing
war on Gaza has
severely impacted the tourism sector and related economic activities, among
other sectors.
These challenges have been echoed in warnings from credit
rating agencies, such as Moody's,
Standard & Poor's, and
Fitch, raising
concerns about Israel's investment appeal, particularly in its ability to
attract foreign investment, which may negatively affect its short and
medium-term competitive advantages.
However, the approach of Israeli leaders towards the war is
shaped by their perception of the state's strategic threats. The acts of
resistance on
October 7, 2023 were seen as a significant blow to Israel's
deterrence capability and international standing. Israeli decision-makers thus
see the continuation of the war to achieve its goals, or some of them, as a
strategic necessity.
To mitigate the
economic impacts and substantial costs of
the war, Israel heavily relies on financial aid from allies such as the US, the
UK, Germany, and France. These countries view the survival of Israel as a
strategic priority, and aid is expected to increase as the aggression on the
strip continues.
While Israeli politicians believe that the direct war
losses, estimated at about $250 million daily, and the resulting significant
government budget deficit can be compensated through allied aid, the repair of
structural damage to the economy will be more challenging. The disrupted
sectors will require considerable time and resources to recover, posing
long-term challenges to the Israeli economy.
In conclusion, while the economic costs and losses sustained by Israel in its prolonged conflict with Gaza are anticipated to impact its war strategies and methods, they are not expected to hasten a resolution to the war. Consequently, it is likely that Israel will persist in its campaign against Gaza, motivated by the imperative to secure a victory or semblance thereof.
This persistence is grounded in the belief that economic considerations, though acknowledged, will remain subordinate to the state's overarching strategic imperatives.
Disclaimer:
Views expressed by writers in this section are their own and do not necessarily reflect Jordan News' point of view.
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