Israel plans economic aid to counteract war's financial damage
The ongoing war with Hamas is heavily weighing on Israel's economy. According to a report by the country's central bank on Thursday, the national economy incurs up to 600 million dollars weekly due to war expenses.
9:03 AM EST, November 10, 2023
The bank's report detailed that these losses primarily result from approximately 360,000 reserve soldiers being mobilized and hence not contributing to workforce activity. In addition, about 144,000 people have been evacuated from areas around and within the Gaza Strip and along the Lebanon border, adding to the economic toll.
The nationwide closure of educational institutions has caused disruption not just for the employees but also forced many parents to remain at home with children who cannot attend schools or kindergartens - as indicated by a report of the Israeli central bank, as quoted by the Times of Israel portal.
Government Planning an Aid Package
On October 19, Bezalel Smotrich, the Israeli Finance Minister, expressed that his department is developing a substantial aid package to support the economy during wartime. He stated this package would be larger than the economic stimulus issued during the pandemic era.
Smotrich reassured that the country's economy is resilient and capable of withstanding the pressures of war and the civil needs of the country. Details about whether the financial injection plan for the economy has been presented in the Knesset are yet to be disclosed.
Millions Earmarked for Reconstruction Efforts
Beyond this, in mid-October, the Israeli Finance Department alongside the prime minister's office announced its plan to allocate 1 billion shekels (approximately 250 million USD) for the reconstruction of towns on the Gaza border that were destroyed during the Hamas attack on October 7.
In addition, a special government agency will be established, intended to operate for five years, to supervise the reconstruction process.
