Israel's Economic Strain Amid Ongoing Conflict
Israel's fiscal landscape remains under severe pressure as the budget deficit has surged to a staggering 8.1% of GDP. This unprecedented deficit is attributed to the government's ramped-up spending on military operations as the conflict in Gaza stretches into its 11th month. Reports indicate that since the start of 2024, the fiscal deficit has ballooned to 72 billion shekels ($19 billion), a stark contrast to the 6 billion shekels ($1.6 billion) surplus recorded in the same period last year.
Humanitarian Crisis in Gaza
The Gaza Strip continues to face an alarming humanitarian crisis, exacerbated by ongoing military assaults. Recent reports from Gazan authorities indicate that nearly 39,700 Palestinians have lost their lives since the onset of the Israeli offensive on October 7, 2023. The humanitarian impact is profound, with 91,645 injuries reported, and a staggering 96% of the local population facing high levels of acute food insecurity. The international community is urged to act swiftly to alleviate the suffering of those trapped in the conflict.
Rising Tensions and International Responses
As tensions escalate in the region, Iran has signaled its intention to retaliate against Israel for the assassination of Hamas leader Ismail Haniya. Iranian officials have stated that a response will come at the
- The Israeli Ministry of Finance has reported that the budget deficit has increased for the 16th consecutive month, reflecting the economic toll of prolonged conflict. The Israeli government has spent over **352 billion shekels** ($92.88 billion) by the end of July, marking a **32.8% increase** compared to the previous year, primarily driven by military expenditures. Additionally, the **Organization of Islamic Cooperation** (OIC) condemned Israel's actions, holding it accountable for the assassination of Haniya and labeling it a violation of international law. Countries like **Turkey** and **Saudi Arabia** have also expressed their outrage, calling for accountability and intervention from the international community. Amid these developments, the **United Nations** has reiterated the need for a thorough investigation into allegations of torture and human rights violations against Palestinian prisoners, emphasizing the urgency of addressing the humanitarian crisis.
