NewsIsrael plans economic aid to counteract war's financial damage

Israel plans economic aid to counteract war's financial damage

TKUMA, ISRAEL - NOVEMBER 08: An Israeli soldier pauses for thought as he views a storage site containing hundreds of destroyed cars and vehicles that have been collected to a central point after the Hamas attacks on November 08, 2023 in Tkuma, Israel. Police, forensic teams and Saka volunteers are continuing to identify the cars and any remnants of bodies. According to Jewish law all parts of a human being, including blood or body parts must be buried. A month after Hamas's Oct. 7 attacks that left 1,400 dead and over 240 held hostage, Israel has maintained a relentless bombardment of the Gaza Strip and launched a ground invasion to vanquish the militant group that governs the Palestinian territory. The Hamas-run health ministry in Gaza said that over 10,000 people have died in Gaza during the war, while the IDF has reported the deaths of several dozen Israeli soldiers. (Photo by Christopher Furlong/Getty Images)
TKUMA, ISRAEL - NOVEMBER 08: An Israeli soldier pauses for thought as he views a storage site containing hundreds of destroyed cars and vehicles that have been collected to a central point after the Hamas attacks on November 08, 2023 in Tkuma, Israel. Police, forensic teams and Saka volunteers are continuing to identify the cars and any remnants of bodies. According to Jewish law all parts of a human being, including blood or body parts must be buried. A month after Hamas's Oct. 7 attacks that left 1,400 dead and over 240 held hostage, Israel has maintained a relentless bombardment of the Gaza Strip and launched a ground invasion to vanquish the militant group that governs the Palestinian territory. The Hamas-run health ministry in Gaza said that over 10,000 people have died in Gaza during the war, while the IDF has reported the deaths of several dozen Israeli soldiers. (Photo by Christopher Furlong/Getty Images)
Images source: © GETTY | Christopher Furlong

9:03 AM EST, November 10, 2023

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.

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.