Israeli Research Center Warns of Severe Long-Term Economic Damage

By Dr. Khalid Saeed August 14, 2024 2799

Between draining Gaza, the Lebanese “Hezbollah” swamp, and the Yemeni “Ansar Allah” pitfall, Benjamin Netanyahu is dragging the Zionist entity into relentless wars, pulling along with him a society internally torn, frail, and weak, enduring heavy human and economic losses since October 7, the full extent of which may only be revealed through an extensive investigation.

 

Long-Term Economic Losses for the Zionist Entity

Despite Netanyahu himself acknowledging that “Israel” is engaged in a full-scale war on seven fronts (Gaza, the West Bank, “Hezbollah,” Yemen, Syria, Iraq, and Iran, according to his statements), research centers and Hebrew media consistently report long-term economic losses for the interior Zionist entity. Even if the war on Gaza were to temporarily cease, the damages would be immense if the war continues or escalates.

 

“Israeli” Reports Reveal the High Cost of the Gaza War on the Zionist Economy

On July 28, the National Security Studies Center published an important study on the losses of the Zionist economy due to the continuation of the war on Gaza or its escalation with “Hezbollah.” The study pointed out that “Tel Aviv” is at a real crossroads, as any political/military decision regarding the future of the war will have significant economic consequences. The study predicted that the deficit for 2024 would exceed all expectations based on the current state budget. “Israeli Radio” confirms that the delay in formulating the 2025 budget means the country is in an unprecedented economic situation, with the Ministry of Finance led by Smotrich needing to manage this financial deficit appropriately. The radio also suggests that there is effectively no Minister of Finance in “Israel” due to Bezalel Smotrich's failure to find effective economic solutions for his country amid the ongoing war on Gaza.

 

The Truth Must Not Be Silenced as it’s a Cry for Future Generations

It is surprising that Zionist admissions of failure in the war on Gaza are increasing by the hour. Reserve Colonel Hazi Nahama believes that the army is lying to the political leadership and citizens, claiming it is destroying tunnels, which he says is not true. In an interview with the Hebrew “TV7 Israel News” he asserted that the army is misleading public opinion and lying to the political leadership. He refuses to remain silent about what is happening within the army because, as he puts it, “it is a cry for future generations.” This statement reveals the political/military deception leading to significant losses that “Tel Aviv” has so far been unwilling to disclose.

However, Gideon Golber, the CEO of Eilat Port, has openly confirmed that a large number of port workers have been laid off due to the ongoing crisis in the Red Sea, particularly, and the war on Gaza, in general. In an interview with the Hebrew newspaper “Maariv” on July 21, he called for measures to be taken with the countries allied with his country to resume operations at the city’s port, which has been closed since November 2023, after “Israel” lost more than 50 million shekels (1 USD = 3.75 shekels), transferring all operations to the Ashdod and Haifa ports on the Mediterranean Sea.

 

The Geostrategic Importance of Eilat Port Despite being Closed

It is evident that the figure mentioned by the Zionist official does not align with the importance of Eilat Port, the only port “Israel” has on the Red Sea. Even Golber himself acknowledged the geostrategic importance of the port and its connection between Australia in the east and the Americas in the west. However, he emphasized the severe challenges facing this strategic port, calling on Netanyahu and his government to find effective and urgent solutions to allow for the resumption of its economic operations and retain its employees, indirectly pointing out the economic losses “Israel” is suffering due to the closure of Eilat Port.

 

After the Alarming Statements of Eilat Port's CEO... The Zionist Economy Suffers as Losses Mount

Returning to the National Security Studies Center, the authors of the study affirm that, given the current situation in Gaza, the “Israeli” economy is only experiencing a 1% growth in GDP for 2024. If the current situation persists, the economic situation will further deteriorate, as defense expenditures will rise, deepening the deficit and increasing the debt-to-GDP ratio, which would harm the credit rating of the Zionist entity. Not to mention the growing fear of investments in “Israel,” particularly in the sensitive high-tech sector.

 

“Israeli” Forecasts of a Grim Economic Reality

The study by the center affiliated with Tel Aviv University indicates that if the Zionist entity enters an open war with “Hezbollah,” the “Israeli” economy could shrink by as much as 10% of the GDP for 2024, with the deficit rising to approximately 15% due to war funding, provisioning food and water, and the costs of preparing shelters and safe havens. The study predicted a grim economic reality for the Zionist entity, resulting from declining growth, reduced income, increased deficit, and rising future debt payments, in addition to changes in human capital, particularly due to the brain drain from “Israel.”

 

“Israeli” Recommendations to Reduce Unnecessary Spending

In fact, the study by the National Security Center provided important recommendations, deeply revealing a clear economic imbalance within the Zionist entity. This led the authors to urge the Tel Aviv government to reduce any unnecessary spending that does not support growth and the military effort, close all non-essential government departments, and cancel sectoral financial allocations that do not increase labor productivity and economic growth in the country.

The study’s authors also made another equally important recommendation, calling for a broad and public debate on the budget issue and the future of the Zionist entity's economy, involving all sectors of the entity, from economists to military generals, as well as prominent politicians and economists, with the aim of formulating a comprehensive economic vision to restore the “Israeli” economy to its state before the “Al-Aqsa Flood” operation.

 

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