Attacks on Gaza cause increasing uncertainties in Israeli economy

This picture taken on August 23, 2022 shows a view of the exterior of the headquarters of the Bank of Israel, the country’s central bank, in Kiryat Ben-Gurion in Jerusalem [AHMAD GHARABLI/AFP via Getty Images]

The Israeli economy continues to suffer because of persistent attacks on Palestine, as Tel Aviv suffers from falling demand, rising costs and labor shortages, Anadolu Agency reports.

Israel has been attacking the Gaza Strip since October and killed around 30,000 civilians. Some reports suggest that the country has called up 350,000 civilians to join the army as reservists.

The cost of the call up of reserve troops, as well as lower employee productivity in some sectors, amounts to $630 million per week, according to a report published by the Bank of Israel in November.

It said the economic cost does not reflect the costs of reduced demand, shortages of Palestinian and foreign workers, and other items.

The cost is estimated to rise as Israel continues to expand attacks on Palestine and casualties by the Israeli military.

The Israeli government started imposing an embargo on Palestinian workers, though that decision caused a supply shock in the economy, Amir Yaron, governor of the Bank of Israel, told CNBC.

The monthly cost of the embargo on Palestinian employees could rise to $1 billion, as per the reports from the Israeli Finance Ministry, according to the media reports.

READ: Despite Israel’s siege, Al-Amal Hospital in Khan Yunis saves mother, baby

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