Following the Hamas attack on October 7, Israel’s focus shifted heavily toward national defense. The initial operation in Gaza has since grown into engagements across various areas, such as Lebanon, Syria, Yemen, Iraq, and Iran. However, with adjusted economic projections, growing worries over national finances, and rising military costs, questions arise about the durability of Israel’s economy amid these escalating actions.
The conflict erupted over two years ago, and Israel’s strength initially relied on solid economic foundations like a modest debt-to-GDP level, substantial currency reserves, and robust international commerce. Yet, recent analyses indicate these strengths are diminishing.
