Israel's economy plunged almost 20%

This sharp decline is due to the conscription of 300,000 reservists for the war against Hamas. The reservists who went to the front had to leave their jobs, which also affected the economy. In addition, the allocation of funds for the evacuation of more than 120,000 Israelis from border areas also had an impact on the GDP figure, which was lower than experts expected.

Earlier in November 2023, Calcalist reported that the operation against Hamas will cost the country more than $50 billion. Provided that the military action continues for no more than 12 months and is limited only to the Gaza Strip, the costs will amount to about 10% of annual GDP. The Israeli authorities called military spending the main priority of next year's budget.

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