Can Israel’s economy sustain conflicts on multiple fronts?

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The aftermath of the October 7 Hamas onslaught powerfully tipped the scales successful Israel’s priorities towards security. What began arsenic a subject effect successful Gaza expanded to conflicts spanning aggregate fronts, including Lebanon, Syria, Yemen, Iraq, and Iran. But with revised maturation forecasts, home interest astir the country’s finances, and surging defence expenditure, is the Israeli system truly resilient to the shocks of its intensifying operations?

When the warfare broke retired much than 2 years ago, Israel’s resilience stemmed from existing macroeconomic assets specified arsenic debased debt-to-GDP ratio, precocious overseas speech reserves and beardown trade. But reports and information amusement that these assets are losing their standing.

Published - April 21, 2026 09:46 p.m. IST

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