A war with Lebanon is disastrous for Israel’s economy.
The Economist published that the worst scenario for Israel’s economy is an all-out war with Lebanon’s Hezbollah.
According to this report, as a result of this war, Israel’s economic growth will suffer greatly, and the effects of these damages will probably be greater than the damages of October 7 last year. Moreover, the expenses of the army will also increase significantly.
This economic magazine stated that Israeli banks are currently suffering from the phenomenon of capital flight. Israel’s 3 major banks have announced that the number of people requesting to receive their deposits to transfer them to other countries has increased.
The report states that Israeli economic experts have accepted the fact that the situation will get worse than before.
The Economist adds that economic decision-makers in Israel now have much more concerns than when the conflict in Gaza began.