In late September, Israel's finance minister, Bezalel Smotrich, acknowledged the strain on the country's economy due to the prolonged conflict. Despite facing the longest and most expensive war in its history, Smotrich emphasized the resilience of Israel's economy.
Following Israeli airstrikes that killed Hezbollah's leader in Beirut, tensions escalated, raising concerns about a potential full-blown conflict. Smotrich highlighted that Israel's economy remains strong and continues to attract investments.
Almost a year after Hamas' attack, Israel has intensified its actions, including a ground incursion against Hezbollah in Lebanon and airstrikes in Gaza and Beirut. Additionally, threats of retaliation against Iran's recent ballistic missile attack have added to the escalating tensions.
As the conflict extends beyond Israel's borders, the economic repercussions are expected to increase not only for Israel but also for other countries in the Middle East. The ongoing hostilities pose challenges for economic stability and growth in the region.
