Israeli media have revealed the costs associated with countering aerial attacks launched by the Sanaa government forces from Yemen in support of Gaza, which target deep inside Israel using missiles and drones.
A report by the Israeli website “Hadashot” pointed out that the cost of intercepting a single missile launched from Yemen amounts to approximately 2 million shekels, equivalent to $520,000. Despite attempts to intercept often requiring more than one missile, these efforts frequently fail, increasing the burden on Israel’s military budget.
These costs represent only a small portion of the significant losses incurred by the Israeli occupation due to ongoing attacks. The Israeli military has raised its overall estimate of the war’s cost from 130 billion shekels ($36.7 billion) to between 140 billion and 150 billion shekels ($39.5–42.4 billion), excluding any potential ground operations in Lebanon or direct confrontations with Iran, as reported by the newspaper Calcalist.
In this context, Israel’s economic deficit has worsened due to the ongoing war, which has entered its first year. The Ministry of Finance has lowered its growth forecasts for this year. Public debt stood at 160 billion shekels ($43 billion) in 2023, with the deficit reaching 12.1 billion shekels ($3.24 billion) by August.
Israeli media disclosed that war spending since October 7 has amounted to around 97 billion shekels ($26 billion), and the deficit is expected to continue rising. Additionally, Israel’s inflation rate rose to 3.6% in August, the highest since October.
In another development, Moody’s downgraded Israel’s credit rating by two notches, warning of the geopolitical risks arising from the ongoing conflict with Hezbollah, further complicating Israel’s economic situation.
Experts predict that Israel’s economy will record zero growth in 2024, while weak growth of 2.2% is expected in 2025.
The newspaper Haaretz reported that the war led to a 1.5% contraction in Israel’s economy and caused a significant decline in exports and investments.
It emphasized that the credit rating downgrades reflect the rising budget deficit and the continued high war expenditures.
Reports indicate that the cost of the war surpasses billions, with increased spending on fuel and military equipment negatively impacting the financial situation of the Israel Electric Corporation, which has spent millions of shekels to secure energy supplies.
In conclusion, the ongoing war in Gaza and the pressure from supporting fronts in Yemen, Lebanon, and Iraq require an urgent reassessment of war strategies and military objectives, according to Israeli reports.