Israeli Economy Struggles Post Al-Aqsa Flood

After three years since Operation Shield of the Elderly, the Israeli economy still suffers from the serious repercussions of the war, including rising debt, declining production, reverse migration, and business closures. The Israeli Central Bank estimated that the cost of the war between 2023 and 2026 amounted to approximately 350 billion shekels, and the economy lost about 177 billion shekels of potential output by the end of 2025, with over 69,000 Israelis leaving and around 61,000 companies closing in 2025. The affected northern and southern regions are still in recovery, and reconstruction could take until 2027, with warnings that the economy may not return to pre-war levels before the end of that year.

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