The Bank of Israel says the nation’s financial system misplaced about $57 billion (177 billion shekels), equal to eight.6% of annual GDP, throughout the two-year navy marketing campaign in Gaza.
The findings have been revealed within the central bank’s 2025 annual report launched on Monday, protecting the interval from 2023 by 2025, when Israel was engaged in a chronic battle with Hamas in Gaza following the group’s October 7, 2023 assault.
Whereas the determine additionally encompasses navy operations in Lebanon, it doesn’t account for the prices of the continuing US-Israeli battle with Iran, now into its fourth week.
The central bank warned that the battle has considerably altered Israel’s fiscal outlook, with weaker development expectations and a widening deficit more likely to push up debt ranges.
Israel’s cupboard has already moved to handle rising battle prices, approving a revised 2026 state funds that provides $13 billion in spending.
Commerce patterns have additionally shifted throughout the battle. Researchers on the Bank of Israel discovered that exports to eight European Union international locations thought of extra important of Israel fell by $1 billion in 2024 and $1.5 billion in 2025, whereas commerce with different companions elevated.
The most recent figures come in opposition to the backdrop of Israel’s battle in Gaza, which started after Hamas launched assaults on October 7, 2023, triggering a chronic navy marketing campaign, one which prompted a fluctuation within the international oil market on the time.
Though a ceasefire took impact in October final yr, Gaza’s Well being Ministry says a minimum of 680 Palestinians have been killed by Israeli fireplace, whereas Israel has reported 4 troopers killed over the identical interval.
Total, the battle has killed greater than 72,000 Palestinians since October 2023, in accordance with Gaza authorities, with ladies and kids making up a big share of the casualties. Impartial researchers recommend the precise loss of life toll may very well be considerably greater.
