War with Hamas to cost Israel above $50b: newspaper
Israel’s war with Hamas in the Gaza Strip will cost as much as 200 billion shekels ($51 billion), the Calcalist financial newspaper has said, citing preliminary finance ministry figures, Reuters reports.
The daily said the estimate, equal to 10 per cent of gross domestic product, was premised on the war lasting between eight to 12 months; on it being limited to Gaza, without full participation by Lebanon’s Hezbollah, Iran, or Yemen; and on some 350,000 Israelis drafted as military reservists returning to work soon.
Calcalist described the ministry as deeming 200 billion shekels an “optimistic” estimate. But the ministry said it does not stand by Calcalist’s data.
Calcalist said half of the cost would be in defence expenses that amount to some 1 billion shekels a day. Another 40-60 billion shekels would come from a loss of revenue, 17-20 billion for compensation for businesses, and 10-20 billion shekels for rehabilitation.