Israeli economic outlook gloomy as costs mount amid Israeli onslaught on Gaza
ALBAWABA – S&P Global cut Israeli credit rating on Wednesday amid mounting risks of the Israeli onslaught on Gaza spiralling into a full-blown regional war, on top of the damages and costs incurred in the wake of the surprise Gaza attack, estimated in dozens of billions of dollars.
Investment services firm S&P Global slashed the Israeli credit rating to negative as occupation forces step up the Israeli onslaught on Gaza, amid ongoing clashes on the northern, north-eastern borders.
S&P Global downgraded the Israeli credit rating to AA-, Bloomberg reported.
Meanwhile, Moody’s has put Israeli debt rating on review for downgrade and Fitch Ratings placed their credit score on negative watch.
S&P now forecasts the economy will shrink 5 percent in the fourth quarter versus three months earlier amid disruptions related to security and reduced business activity, according to a Tuesday statement.
The drafting of a large number of reservists, which may cost more than one trillion dollars, the halt of foreign tourism and a broader confidence shock will also hurt economic growth in the coming months.
Losses in infrastructure and construction are estimated at just below $7 billion, according to Sky News Arabia, and stock exchange losses have reportedly increased to nearly $33 billion, from $20 billion lost in the first two days following the surprise Gaza attack.
Running costs of the Israeli onslaught on Gaza, on top of everything else
Israeli Minister of Finance Bezalel Yoel Smotrich said the genocide in Gaza is costing the occupation around $246 million per day, Sky News Arabia reported Wednesday.
In total, as of Wednesday morning, the cost of continuous bombardment in Gaza has exceeded $4.4 billion in 18 days. In addition to nearly $74 billion incurred in damages, lost expenses and the stock market crash.
Occupation army soldiers on a checkpoint as the Israeli authorities call in reserves amid the Israeli onslaught on Gaza ahead of land invasion - AFP
Moreover, the closure of the Tamar natural gas outpost cost the Israeli economy around $170 million per day, which after 16 days amounts to another $2.7 billion in lost export opportunities.
AlJazeera predicts that the genocide in Gaza spiralling into a full-blown war with Syria and Lebanon to push oil prices up by a minimum of 10 percent, or as much as $150 per barrel in case of a direct confrontation with Iran.
Such an escalation will drive Israeli inflation higher by 0.2 percent, and up to 6.7 percent in case a war with Iran breaks out, which would slow global economic growth to 1.7 percent, AlJazeera forecasts.
Meanwhile, one of the most impactful repercussions of the planned invasion of Gaza is the number of reserve soldiers called away from their jobs and into active duty.
Untold expenses of the Israeli onslaught on Gaza and the impending invasion
Some 360 thousand reserve occupation soldiers were called in, which is equivalent to 3.7 percent of the Israeli workforce.
At an average Gross Domestic Product (GDP) per capita of $54,968, recalling those reserves will cost the Israeli economy around $4.9 billion by the end of the year, equivalent to 1.16 percent of the GDP.
Over the course of 12 months, should the genocide in Gaza and land invasion last that long, pulling the reserves will cost the Israeli economy $19.8 billion, approximately 4.7 percent of the GDP.
That is in addition to the costs of training and equipment, which are estimated at $12.5 million per soldier, according to a 2017 Jerusalem Post report, adjusted for inflation.
