Middle East: The Zionist economy continues to collapse in the wake of the brutal aggression on Gaza, with its direct repercussions seen in the operations of the Palestinian resistance and the support fronts from Yemen, Lebanon, and Iraq.

 

In this context, Zionist media reported an acceleration in the deterioration of the economic situation, inflation indicators, and the rising cost of living in the occupied Palestinian territories. They emphasized that Netanyahu’s government stubbornly refuses to consider the economic damage caused by the war as a reason to reconsider or halt it.

Internal Criticism: Rising Cost of Living Signals Explosion

The Hebrew newspaper Haaretz criticized the economic situation in the occupation entity, noting that "the longest and most expensive war in our history is imposing a price on the cost of living and reducing the likelihood of lowering interest rates."

Haaretz labeled the cost of living index in "Israel" as the "war index," highlighting that "the longest and most expensive war in the country's history imposes costs not only in security expenses and compensations for numerous victims but also in the rising cost of living." The August index rose by 0.9%, contrary to early expectations of a 0.5% increase, largely due to the war and its consequences.

The paper noted the impact of resistance operations and support fronts on increasing reverse migration and halting travel movements to the occupied Palestinian territories. It explained that part of the revenues came from the sharp rise in air travel prices on Israeli airlines, as foreign airlines drastically reduced their flights to "Israel," leading to decreased supply and increased demand, resulting in a 22.1% rise in the cost of overseas travel.

The newspaper also highlighted the increasing cancellation of flights by foreign airlines, citing concerns over the repercussions of Zionist violations against Yemen, Iran (the assassination of Ismail Haniyeh), and Lebanon. This was further illustrated by the effects of the Yemeni missile operation that targeted "Tel Aviv," causing unprecedented internal turmoil and anxiety, with millions of Zionists hiding in shelters.

The newspaper reaffirmed that these conditions have worsened the flight of investors, with foreign investment decreasing by 60%. Half of the tech companies have left, inflicting severe losses on the enemy.

In conclusion, Haaretz attacked Netanyahu's government, calling for an end to the indifference exhibited by him and his criminal ministers.

For its part, the Zionist channel Makan reported that inflation had risen by more than one percent, exceeding earlier predictions, making a reduction in interest rates unlikely in the near future.

The cost of consumer goods rose by 0.9% last July, while the inflation index surprised in August, jumping from 3.2% to 3.6%, and housing prices increased by 0.9%, according to the channel.

It added that the rising cost of living is seen across different regions, with a 0.1% increase in central "Tel Aviv," 0.8% in Haifa, 1.8% in the central region, 1% in "Tel Aviv," and 0.4% in the south. New apartment prices rose by 0.9%, contributing to an annual price increase of 5.8%.

The price of fresh vegetables jumped 13.2% last month, while transportation costs rose 2.8%, education and entertainment 0.5%, home maintenance 0.4%, and food prices 0.3%. This has brought the annual rate of price increases to about 6%, and if this trend continues, apartment prices could rise by more than 10%.

This rise in the cost of living is likely to deepen public discontent with Netanyahu’s government, amplifying the impact and success of the Palestinian resistance and support fronts from Yemen, Lebanon, and Iraq.

Budget Increase Fuels Internal Anger

In a related context, the decision by the enemy’s government to increase the budget continues to spark criticism and anger from senior Zionist officials and experts, warning of dire consequences due to Netanyahu and Finance Minister Smotrich’s economic policies.

Zionist media quoted Yoel Naveh, the former chief economist at the Israeli Ministry of Finance, as saying that the Zionist entity urgently needs to take strong and immediate actions to draft a responsible budget for the coming year to avert an impending crisis. He noted that the Zionist economy is heading down a dark tunnel.

Naveh warned that this crisis could drag the economy into recession and endanger what he called "Israel’s national security," adding that if the government fails to address the upcoming year’s budget through spending cuts, tax increases, and reforms, it could face a financial crisis within the next three to five years. This underscores that the aggression and blockade on Gaza, along with their direct effects, will cause significant economic troubles, not to mention the escalating operations from Yemen and Lebanon, which threaten major economic, security, and military disasters for the enemy.

U.S. Acknowledgement: The War Has Torn "Israel" Apart

In a related report, U.S. agency Bloomberg confirmed that the economic situation in the Zionist entity reveals how the operations of the resistance and the support fronts have torn "Israel" apart.

In a recent report, Bloomberg stated that "there is a shake-up in Prime Minister Benjamin Netanyahu’s coalition, as 'Israel' faces a difficult economic reality," noting that the war on Gaza is "tearing Israel apart."

The report explained that "Israel is experiencing slowed growth, rising inflation and unemployment, and a contraction in GDP," while Netanyahu continues to inflate public spending.

The report added that the continuous Hebrew economic crises come at a time when "the war in Gaza continues, threats and battles from Lebanon, Yemen, and Iran are increasing, and the West Bank is boiling," highlighting the impact of the increasing operations of the resistance and support fronts.

Bloomberg also touched on other aspects of the Zionist crisis, including "the government’s payment of hundreds of thousands of salaries for reserve soldiers, hotel bills, and housing subsidies for tens of thousands of evacuees near the northern and southern borders." Additionally, relations with the U.S. may also deteriorate as the presidential elections loom on the horizon.

#Palestine #Israel #Economic_Crisis #GazaGenocide About 2 months