PNN – The head of the Central Bank of the Zionist regime announced that based on the evaluations made of the costs of the war against Gaza and the reduction of revenues resulting from it, 58 billion dollars have been damaged to this regime.
According to Pakistan News Network, citing the Zionist media, Amir Yaron, the head of the Central Bank of Israel, emphasized that the war against the residents of Gaza has had extensive negative effects on the economic activities and financial markets of this regime.
He added that on Monday, the Central Bank of Israel reduced the interest rate by 25 points to 4.5%, and this is the first change of direction that the Central Bank has taken in the process of increasing interest continuously since April 2022.
This senior economic official of the Zionist regime continued that the cabinet should focus on war expenses and expenses that drive the engine of growth and reduce non-essential expenses and things that are not useful for economic growth.
He added: Also, evaluations indicate that the ratio of Israel’s debt to GDP will increase to about 66% by the end of 2024 and 2025.
Yaron emphasized that due to the threats of war, the lack of immediate action to implement the necessary changes in the budget by reducing expenses, dissolving unnecessary ministries and increasing revenues will result in large costs for the Zionist economy in the future.
Previously, the Ministry of Finance of the Zionist regime also wrote in a report published in December: war expenses of 75 billion shekels (21 billion dollars) should be financed through borrowing or reducing the public budget along with increasing taxes.
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The American newspaper “Washington Post” previously quoted analysts and wrote: Tel Aviv has suffered a heavy economic blow and its impact on the technology sector is worrying.
The Washington Post added that the Gaza war has cost the Israeli government $18 billion, or about $220 million a day.
In a report recently published by JPMorgan Chase Bank, it is stated that the size of the Israeli regime’s economy will shrink by 11% in the last quarter of 2023 due to the Gaza war.
The evaluations of this bank are among the most pessimistic evaluations of Wall Street analysts so far, and based on this, many investors have sold the shares of Israeli companies.
According to this report, in the third quarter of 2023, the economy of the Zionist regime will lose all the profits it had earned during the year due to the encroachment on the Gaza Strip.
The Zionist regime is facing a sharp decline in the technology and tourism sectors, which are the main drivers of its economic growth, and the devaluation of the shekel (the currency of this regime).
Since the beginning of the al-Aqsa storm operation and the occupation regime’s declaration of war, local stocks and bonds have fallen, many companies and schools are closed, and most airlines have stopped flying to Tel Aviv.
In response to more than seven decades of occupation and aggression by the Zionist regime against the people of Gaza and other areas of the occupied territories, the Palestinian resistance launched the Al-Aqsa storm operation against this regime on the 7th of last October. As usual, the Zionist regime responded to the operations of resistance fighters by massacring civilians and bombing residential areas.