During a speech to the Knesset, Israeli Defense Minister Yoav Gallant laid out a dual goal for the ongoing ground operation in the Gaza Strip: not only the release of the hostages still held by Hamas, but also to silence the rockets, allowing civilians access enable the economy to return to normality.
Published on: 09/11/2023 – 8:58 p.m
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For the moment,Israel resists all calls for a ceasefire or even a simple humanitarian pause, but the conflict has costs that may be difficult to bear in the long term: Israel’s central bank puts them at $600 million a week, or 6% of GDP. On Tuesday, however Yoav Gallant admitted on Tuesday that Israel expects a “long war” against Hamas. “This is a war like we have never seen before,” he said.
This economic situation is largely due to the massive mobilization of reservists, which deprives companies of personnel and, as in the times of COVID-19In addition, many schools are closed, which makes it difficult for parents to organize.
On the night of Wednesday, November 8th to Thursday, November 9th, the Knesset, Israel’s parliament, voted for a nearly $4 billion economic support plan, both for war-affected businesses and those laid off employee was intended. Unemployed without wages.
Also read: Israel-Hamas war: A new shock for the global economy?
A measure that does not affect the 18,000 Palestinians Gaza whose work permit in Israel was revoked immediately after October 7th.
Crisis in Gaza
As for the Palestinian economy in Gaza, it is like an enclave: reduced to a field of rubble. After a month of war and bombing of the Gaza Strip, the poverty rate in the Palestinian territories (Gaza Strip and West Bank) is estimated to have increased from 26.7% to 31.9%, according to estimates by the United Nations Development Program (UNDP). That’s 285,000 new arms, in addition to almost 1.5 million before the war.
A rate that could reach 35.8% if the war lasts another month (500,000 new arms), or even 38.8% if it lasts two more months (more than 660,000 new arms).
Also listen to the economy today – The war between Hamas and Israel is putting pressure on neighboring countries