Ongoing war costing economy some $600 million per week — Bank of Israel

The absence of many workers from their jobs due to the ongoing war with the Hamas terror group has been costing the Israeli economy an estimated NIS 2.3 billon ($600 million) per week, or about 6 percent of GDP, according to a research report by the Bank of Israel.

The report measures the weekly cost in the first three weeks of the war, which broke out on October 7, and attributes the drop in labor supply to the massive mobilization of reserve soldiers, the evacuation of residents in the south and north, and the closure of the education system, making it hard for parents to work.

The cost calculation breaks down into NIS 1.25 billion due to the complete closure of educational institutions, NIS 590 million due to the absence at work of 144,000 evacuated residents from war-affected areas, and about NIS 500 million due to the mobilization of about 360,000 reserve soldiers.

The partial opening of the education system in recent days may reduce the cost, the central bank notes.