Eisenkot Faces $130B Bill

The next Israeli government, which Gadi Eisenkot has been tasked with forming, faces mounting economic burdens from the wars. Their financial cost is estimated at about $130 billion between 2023 and 2026, while military spending accounts for roughly 8% of the budget. The Bank of Israel expects public debt to reach 68% of GDP in 2026 and the budget deficit to rise from 4.4% to 4.6% in 2027. Expert Ramzi Halabi says ending the hostilities, cutting military spending and restoring investor confidence are essential for recovery. Other challenges include labor shortages, declining productivity and widening social disparities. Poverty affects 38% of Arab households, and Arab women’s participation in the labor market is just 46%, underscoring the need to expand employment opportunities and economic inclusion.

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