The High Cost of War: Why Taking Over Gaza City Could Hurt Israel's Economy
Gaza CityWed Aug 13 2025
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Israel is thinking about taking control of Gaza City. This could be a big problem for the country's money situation. An expert says it might cost up to NIS 100 billion. That's a lot of money. It's even about 5% of Israel's total yearly income. The expert is worried. He thinks Israel can't handle this big cost for a long time.
Israel is already in a long and tough war. It started almost two years ago. The war is against Hamas. It's also against other groups in the area. The war has already cost Israel a lot of money. It's about NIS 300 billion so far. This has made the country borrow more money. It has also made the country's debt go up.
The war has also affected regular people's lives. Many soldiers have been called to fight. They have been away from their jobs for months. This has hurt small businesses. It has also made it hard for them to get money.
The expert says taking over Gaza City will cost a lot at first. It could be between NIS 25 billion and NIS 50 billion. This includes the cost of soldiers and moving people. It also includes giving people food, water, and other basic needs.
This will make it hard for the government to pay for other things. They might have to raise taxes. They might also have to cut spending on schools, hospitals, and roads. The government is already in a tough spot. They don't have extra money for this.
Israel has been borrowing money to pay for the war. This has made the country's debt go up. It's now about 70% of the country's yearly income. Paying back this debt is expensive. It's about NIS 60 billion a year.
The expert is worried about more problems. He thinks other countries might not want to trade with Israel. They might also not want to invest money in Israel. This could make Israel's money situation even worse. It could also make it harder for people to get loans. It could even make people leave the country.
The expert says this could delay Israel's recovery. The country's economy shrank last year. It's starting to get better now. But this plan could make things worse. It could make the economy shrink again. It could also make it harder for people to find jobs.