US Media: Cost-of-Living Crisis Deepens in ’Israel’ Amid Rising War Expenditures

By Staff, Agencies

The escalating war on Gaza has intensified economic hardships for "Israeli" households, with increased taxes and austerity measures compounding the cost-of-living crisis, according to a recent report by Bloomberg.

The report highlighted that "Israel" is grappling with a 40-billion-“shekel” [$11 billion] war bill for 2024 alone.

Last year, "Israel" borrowed over 260 billion "shekels" in international and domestic markets, pushing its budget deficit to 7.7% of GDP. Efforts to reduce the deficit to approximately 4.5% by 2025, through higher taxes and other fiscal measures, are expected to make life in the occupied territories even more expensive.

The economic strain has sparked concern among "Israeli" households, as noted by Sharon Levin, a spokeswoman for “Pa’amonim”, a nonprofit organization offering financial guidance. “Over the past weeks, the number of families approaching us has more than doubled,” she said.

Adi Einbinder, a 40-year-old working mother of three, expressed her frustration during a recent radio program. “It will cost us more than 17,000 'shekels' a year,” she stated, adding that she and her husband are now relying on their parents for financial support. “We’re supposed to be helping them right now. We feel trampled.”

The report warned that rising taxes, including a 1% increase in value-added tax, along with higher food, water, and electricity bills, “will likely deepen social and political divides.”

Economic pressures are also prompting skilled "Israeli" workers to consider emigration, with official data showing that emigration rates have doubled over the past two years.

The ongoing war and resistance-led multi-front conflicts have significantly impacted "Israel's" $525 billion economy.

Industries such as construction and tourism have declined, while labor shortages persist as many individuals are called up for reserve duty.

GDP growth was estimated at just 0.4% last year, ranking "Israel" among the slowest-growing developed economies.

Despite these challenges, "Israel's" military spending remains on an upward trajectory, with plans to boost the military budget by at least 20 billion "shekels" annually—equivalent to 1% of GDP—for the next decade.

The war on Gaza began on October 7, 2023, following Operation Al-Aqsa Flood, a surprise offensive launched by Hamas in response to "Israel's" prolonged campaign of violence against Palestinians.

The onslaught has so far claimed the lives of at least 45,805 Palestinians, predominantly women and children, and left over 109,064 injured. Thousands more remain missing and are presumed dead under rubble.