Can Israel afford war against Hamas? Israeli bank warns
Shares
One of Israel's major private banks, Hapoalim Bank, has issued a warning that a war with Hamas would cost Israel billions of dollars, potentially leading to budget deficits.
According to Israeli media reports, Hapoalim Bank has estimated the initial cost of Israel's military expenditures in a conflict with Hamas at 6.8 billion dollars.
The bank acknowledges that it is currently challenging to determine the duration of the conflict, but it estimates that a military situation in the coming year could result in a 1.5% deficit in the Israeli budget.
The bank's report includes expenses related to Israel's call for 300,000 reserve soldiers, which would also necessitate them leaving their full-time employment, resulting in significant economic losses.
According to the report, this marks the first time since the 1973 Arab-Israeli war that Israel has called for such a large number of reserve soldiers.
In addition to military expenditures, the possibility of substantial expenses arises from damage to infrastructure, homes, medical care for the injured, and support for the families of fallen soldiers due to Hamas attacks.
On the other hand, the International Monetary Fund (IMF) has expressed concerns about Israel's military activities in Palestine and their potential impact on the global economy's uncertain outlook.
