Israel Reports $57 Billion Economic Loss from Two Years of War

Bloomberg reported on March 23, 2026 that Israel's Central Bureau of Statistics confirmed the country lost approximately $57 billion (177 billion shekels) or 8.6% of its annual GDP over the two-year period from October 2023 through end-2025. Direct war costs (military spending, emergency expenditures) totaled approximately $55 billion. Output was roughly $47 billion below pre-war baseline projections. Despite this, the Israeli economy grew 2.9% in 2025 (up from 1% in 2024), with the business sector expanding 3.2%. Israel's public debt reached 68.6% of GDP by end-2025. The 2026 cabinet budget added $13 billion in new spending, with defense demands rising to 177 billion NIS.