Israel’s economy shrinks 3.5% after 12-day war

According to Channel 13, this is the first time since the beginning of the war that the regime’s economy has shrunk, recording a 3.5% contraction in the second quarter of 2025.

Official data released by the Central Bureau of Statistics of the Zionist regime confirmed that the 12-day imposed war had negative impacts and economic consequences for the regime.

Previously, the Zionist newspaper Maariv revealed that the regime’s economy had suffered tens of billions of shekels in losses as a result of the 12-day imposed war.

The Hebrew-language outlet confirmed that the war inflicted around 52 billion shekels (over $14 billion) in damage to the regime’s gross domestic product (GDP).

Maariv wrote: “Even if we assume that half of the economic damage can be offset by increased activity in the aftermath, we are still speaking of losses amounting to 26 billion shekels, or 1.3% of GDP — a considerable figure.”

In this regard, Hebrew media also disclosed that the economic cost of the Gaza war has so far reached 300 billion shekels (around $81 billion), and it is estimated that this figure has already surpassed that level.

An economic affairs analyst at the Hebrew-language Channel Kan stated that internal discussions are ongoing within the Ministry of Finance of the Zionist regime regarding this figure, noting that a large part of the cost is related to military operations.