Bank of Israel’s Estimate on the Cost of War with Hamas- Analysis

Israel’s Operation against Hamas to Cost $53 Billion, Stifle Economic Growth until 2024

According to figures released by the Bank of Israel on Monday, Israel’s ongoing military campaign against Hamas will cost the country $53 billion and have long-lasting effects on economic growth. While a truce is currently in effect, the Israeli military is expected to resume operations in Gaza this week.

The Bank of Israel provided a breakdown of the costs, stating that direct military spending will account for $29 billion of the total, including military aid from the US. Compensation for damage will amount to $6 billion, while other civilian expenses will reach $6.75 billion. The remaining costs will be made up of lost tax revenue and interest on government debt.

Furthermore, the bank warns that the conflict will impede Israel’s economic growth. The country’s growth rate is projected to remain at 2% for the rest of the year and until 2024, a decrease from earlier estimates of 2.3% and 2.8% respectively.

The ramifications of the war extend beyond the financial toll. The bank noted that the conflict will result in a loss of approximately 3% of GDP by the end of 2024. This is due to the expected closure of businesses and educational institutions during the hostilities.

The initial aggression in October saw Hamas militants launching a surprise attack on Israeli cities and subsequently occupying Israeli towns and settlements. In response, Israel launched an intensive campaign of airstrikes followed by a ground invasion of Gaza.

As of now, the death toll stands at over 1,200 in Israel and at least 15,000 in Gaza, according to the Israel Defense Forces (IDF) and Gaza Health Ministry. A truce was implemented on Friday, and an extension has been granted for the exchange of Israeli hostages in Gaza and Palestinian prisoners in Israeli jails.

Hamas has already released 40 of the approximately 240 Israeli hostages in exchange for 117 Palestinian prisoners. Israeli officials have indicated that they may prolong the truce as more hostages are released. However, Defense Minister Yoav Gallant announced that the IDF’s operations will resume once the truce expires and continue until Hamas is destroyed.

While the war has significant financial implications for Israel, Gaza’s fragile economy has been even more severely impacted. UN reports indicate that almost half of Gaza’s structures have been destroyed, resulting in the loss of nearly 400,000 jobs. If the fighting continues into December, poverty levels are expected to rise by almost 45%. The UN Development Programme has warned that the war will set back development in Gaza by 16 to 19 years.

Overall, the article provides a summary of the financial costs and economic impact of Israel’s conflict with Hamas. The source, RT News, is known for its pro-Russian bias, so it is essential to approach the information with caution and look for corroborating evidence from other sources. While the figures provided by the Bank of Israel lend credibility to the article, it would be beneficial to examine additional sources to gain a well-rounded understanding of the situation.

The presentation of facts seems relatively straightforward, mainly outlining the financial costs and economic consequences of the conflict. However, it is essential to be aware of potential biases in the information presented. The article does not include perspectives from Hamas or Palestinian sources, which may limit a comprehensive understanding of the situation.

In terms of potential biases, there could be a pro-Israel bias given the funding of military aid by the US and the focus on Hamas’s aggression. Additionally, the article mentions the potential resumption of hostilities until Hamas is destroyed, which may contribute to an overall framing of the conflict from an Israeli perspective.

Given the prevalence of fake news and the influence of political biases, the public’s perception and understanding of the information presented in the article could be impacted. Individuals who rely solely on this article may develop a one-sided perspective on the conflict, potentially leading to misinformation and a lack of nuance in their understanding of the situation. It is important for readers to seek diverse sources of information and critically evaluate the reliability and potential biases in the sources they encounter.

Source: RT news: Bank of Israel estimates cost of war against Hamas