News - Middle Eadt: The Israeli economy is increasingly suffering due to ongoing aggression and blockades on Gaza and Lebanon. The economic impact is accelerating as operations from Lebanon, Iraq, and Yemen inflict more damage daily, causing declines in stock markets, currency value, and credit ratings.

A recent US report highlighted these economic troubles, citing heavy military expenditures and their ripple effects. Israel's credit rating has dropped, its currency (the shekel) has devalued by 3 percent, and the budget deficit for September exceeded $2.5 billion. The report, published by Forbes, predicts further economic losses due to continued aggression on Gaza and escalations in Lebanon.

The military spending, which has reached $67 billion, is diverting resources from the private sector, leading to increased inflation and a growing deficit, which stood at 8.8 percent by the end of September. Forbes warns that Israel’s financial institutions will struggle to manage these pressures, and this will lead to further crises, especially as military operations continue.

The report also highlights the negative impact on Israel’s reputation as a business destination, predicting a brain drain in the tech sector, exacerbated by operations from Hezbollah and Iraqi resistance. Economic analysts have warned that delays in setting a stable budget could further erode confidence in Israel’s economy, increasing investment flight and worsening its financial predicament.

Other economic publications confirm that if the war extends or aggression on Gaza and Lebanon continues, Israel’s economy will face greater risks, with rising debt, inflation, and declining investment compounding the crisis. Israel is grappling with debt that has reached $42 billion, unprecedented in decades, signaling the deep economic dilemma it faces.

Israel is experiencing a severe economic decline marked by currency devaluation, stock market drops, investment flight, rising reverse migration, and stalled import/export sectors due to the Yemeni blockade. The tech sector, responsible for a quarter of Israel’s revenues, is also struggling, with these cumulative issues threatening to further drain Israel’s resources amid its aggression.

Since early October 2023, Israel has been waging brutal two-front aggression that has killed at least 42,000 people in the Gaza Strip and 2,141 others in Lebanon so far.

Over the same period, the usurping regime has also assassinated several resistance leaders, including Hamas’s political bureau chief Ismail Haniyeh and Hezbollah Secretary General Sayyed Hassan Nasrallah.

In support of Palestinians in Gaza, resistance groups have launched retaliatory attacks on Israeli targets and vowed to keep fighting until the Gaza onslaught ends.