Rising Costs of Conflict: Israel's Military Operations in Lebanon and Gaza
The ongoing military operations in Lebanon and Gaza have imposed a significant financial burden on Israel, with daily costs of approximately $134 million for fighting in Lebanon alone. According to a senior economic official quoted by the Israeli newspaper Yedioth Ahronoth, the total expenses associated with the military actions since September have reached about $6.7 billion. The official highlighted the high costs of ammunition and the need for increased budget allocations as the conflict continues to expand.
Recent economic data indicates that Israel's economy is struggling amid the prolonged conflict, with a mere 0.3% growth in gross domestic product (GDP) for the second quarter of 2024, a decrease from previous months. The Finance Ministry reported a budget deficit of 8.8 billion shekels ($2.34 billion) in September, driven by escalating military and civilian expenditures related to the ongoing war. This deficit has now surpassed the government's annual target of 6.6% of GDP, raising concerns about the sustainability of Israel's economic health as military spending continues to increase.
Evacuations and Escalating Strikes in Southern Beirut
In a related development, the Israeli army has ordered the evacuation of residents from two neighborhoods in southern Beirut, citing impending strikes on buildings identified as housing Hezbollah installations. The neighborhoods of Haret Hreik and Hadath have been specifically targeted, with the Israeli military warning that operations against these facilities will occur shortly. This directive follows a series of airstrikes in the region, which have reportedly targeted weapons caches and intelligence centers linked to Hezbollah.
As the conflict intensifies, the situation in Gaza remains dire, with reports indicating that over 400 fatalities have occurred since the onset of the latest offensive. The Israeli military has conducted extensive air and ground operations in response to threats from Hamas, leading to a humanitarian crisis in the area. The G7 nations have called for increased humanitarian aid to Gaza, emphasizing the urgent need to address the suffering of its 2.4 million residents amid the ongoing siege.
