Israel’s wars are expensive; Paying the bill could force tough choices

Israel’s ongoing war against Hamas and Hezbollah has not only taken a toll on human life but has also been costly, with significant financial implications for the country’s economy. Military spending has surged, leading to economic stagnation and concerns about long-term effects. The conflict has led to a decline in economic output, particularly in border areas, and has disrupted key sectors like tourism and labor. Despite these challenges, Israel’s economy remains resilient, with a strong tech sector and manageable government debt. The country’s ability to rebound will depend on addressing budget deficits and making tough choices between defense and social programs. Support from the U.S. has been crucial, providing military aid and financial assistance in times of need. The government is taking steps to assess the impact of increased defense spending and ensure economic stability in the post-war period.