The war waged by the Israeli regime against the people of Gaza and regional conflicts have not only caused deep humanitarian crises but have also plunged the regime's economy into unprecedented crises. This war has inflicted extensive financial losses on Tel Aviv, and its effects have also confronted neighboring countries with significant economic consequences.
Budget deficit crisis and tourism recession in occupied territories
As a result of the war, the Israeli regime is facing one of the heaviest budget deficits in its history. The regime's budget deficit has reached 7.7% of the gross domestic product, equivalent to $40.5 billion. This figure is far beyond initial estimates and demonstrates the severity of the damage inflicted on the regime's economy.
The Israeli regime's tourism industry, which is considered one of its important sources of income, has experienced a 70% decrease in the number of foreign tourists in 2024. The number of tourists has dropped from 2.96 million in the previous year to 885,000. Additionally, the departure of 170,000 Palestinian workers who were employed in key sectors such as construction has exacerbated the deep recession in these sectors.
Echoes of regional crisis on Arab countries
The Palestinian economy, especially in Gaza, has been severely impacted by the war. Its gross domestic product declined by 86% in the first half of 2024, and the unemployment rate has risen to over 80%. The destruction of 88% of private sector units and the displacement of 1.9 million people have brought Palestine to the brink of an unprecedented humanitarian and economic crisis.
Regional developments have also severely affected Lebanon's economy. The destruction of infrastructure, unemployment of 166,000 people, and a 6.6% decline in gross domestic product growth are among the consequences of this war on Lebanon. Additionally, the economic losses of this country have reached $5.1 billion as of November 2024, with a significant portion attributed to the destruction of lands and property.
In Egypt, the regional war has led to a significant decline in Suez Canal revenues. The canal, which is considered one of Egypt's primary sources of foreign currency, has lost 60% of its income, and its losses amount to $7 billion. Egypt's economic growth has also decreased by 2.4%, a significant decline compared to the previous year.
Jordan's economy, especially its tourism sector, has been severely affected. The country's tourism revenues in the first ten months of 2024 reached $6.15 billion, a 4.2% decrease compared to the same period last year. Other sectors, such as retail and pharmacies, have also experienced a 20% decline in revenues.
Pervasive regional crisis
While the Israeli regime grapples with a historic budget deficit and economic recession, Arab countries have also been affected by the consequences of this war. The destruction of infrastructure, decline in gross domestic product, and recession in key sectors of the economy all indicate the severity of the regional crisis.
Regional and international cooperation to put an end to the Israeli regime's rogue actions is an urgent necessity, as neglecting it would lead to an escalating crisis.
NOURNEWS