Israel's economy suffers $57B loss from two years of Gaza genocide

Israel's economy has suffered losses exceeding $57 billion during the two years of genocide in Gaza, according to a report cited by Bloomberg.

Data published in the 2025 annual report of the Bank of Israel showed losses of 177 billion shekels, equivalent to about $57 billion or 8.6 percent of annual gross domestic product, between 2023 and 2025.

The losses were largely attributed to the genocide in Gaza and included costs linked to Israeli invasion in Lebanon.

The report did not include the economic impact of the ongoing war on Iran, which has entered its fourth week, with Israel carrying out air attacks and facing retaliatory ones.

Earlier this month, the Israeli war Cabinet approved a revised 2026 state budget, adding $13 billion to finance its war.

The report also highlighted shifts in trade patterns, with exports to eight European Union countries considered more critical of Israel falling by $1 billion in 2024 and $1.5 billion in 2025, while trade with some other countries increased.

"This pattern may indicate that political positions are influencing export volumes to these countries," the Bank of Israel said.

It added that the 12-day war with Iran last June alone reduced economic output by 0.3 percent of GDP.

Israel launched its genocide on Gaza in October 2023, killing more than 72,000 Palestinians, wounding around 172,000 others and devastating about 90 percent of civilian infrastructure.

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Source: TRT