(VOVWORLD) - The ongoing conflict with the Hamas militant group has cost the Israeli economy an estimated 600 million USD per week, equivalent to about 6% of GDP, as reported by the Bank of Israel on Thursday.
 Israel's economy takes a dent due to the country's conflict with Hamas. (Photo: Reuters) |
The report is based on the average weekly cost of the conflict during its first three weeks, starting October 7. The cost is attributed to the mobilization of reserve soldiers, the evacuation of residents in affected areas, and the closure of the education system, which has made it challenging for parents to work.
Meanwhile, the United Nations Development Program said the Israel-Hamas conflict could set the Palestinian economy in Gaza and the West Bank back decades.
The past month of conflict has erased 61% of employment in Gaza and 24% of employment in the West Bank, UNDP warns. Palestinian GDP is expected to fall 4.2% after one month of conflict compared with pre-conflict estimates, a loss of about 857 million USD.