Three years after Operation Al-Aqsa Flood, the Israeli economy continues to face severe consequences from the war, including rising debt, declining output, reverse migration, and business closures.
In this context, the Bank of Israel estimates the total financial cost of the war from 2023 through 2026 at approximately 350 billion shekels. It indicates that the system’s economy lost around 177 billion shekels in potential output by the end of 2025.
Additionally, over 69,000 Israelis emigrated in 2025, and roughly 61,000 businesses closed during that year.
The economic crisis persists in the war-torn northern and southern regions, where rebuilding certain areas could extend through 2027.
The Bank of ‘Israel’ has warned that the economy may not return to pre-war levels until the end of 2027.
Source: Al-Manar English Website