Since the Hamas attack and massacre of October 7, when more than 1200 Israelis were murdered and 250 taken hostage, Israel’s economy has undergone tremendous strain, with the war having wide-reaching effects.

The economic toll came early on, when Israel called up some 300,000 army reservists for active duty. With threats on multiple fronts—Hamas in the South, Hezbollah in the North, and internally in Judea and Samaria—Israel needed all hands on deck. Now, more than 4 months since the war began, we are seeing more clearly how Israel’s economy has taken a big hit.

In addition to hundreds of thousands of Israelis leaving their jobs for duty in the IDF, tourism, a major industry in Israel cratered with the beginning of the war. Flights were canceled, and Israel’s cities and streets were left largely empty of tourists.

Another impact on Israel’s labor force came from Hamas targeting foreign workers in addition to Israelis for murder and kidnapping. Many of the remaining workers left the country. Israel also suspended the employment of many of the more than 150,000 Palestinian Arabs who held jobs in Israel.

An example of the financial cost of war is the Iron Dome defense system, which Israel uses to prevent rockets from raining down on its cities. Each interceptor missile costs an estimated $50,000!

Where are we Headed?

Most recently, Israel’s Central Bureau of Statistics said Gross Domestic Product (GDP) plunged 20% in the fourth quarter of 2023. In addition Moody’s downgraded Israel’s credit rating in light of the war. Prices are rising and many businesses have been forced to close their doors, for now.

Despite these difficulties, most expect Israel’s economy to bounce back quickly, when the war ends, but who knows when that will be? As Israel pushes to eliminate Hamas in the next few months, the possibility of war with Hezbollah looms on the horizon. And there’s always the head of the snake, Iran, which is behind Hezbollah and Hamas, and seeks to develop nuclear weapons.

And there’s more to be concerned about—talk from the international community about unilaterally recognizing a Palestinian State. In light of the murderous attacks from Gaza, supported by a huge majority of Palestinian Arabs in Judea and Samaria, most Israelis oppose giving away more land in futile hopes of peace. In fact, Israel’s Knesset (parliament) just passed a resolution to oppose a Palestinian State. But the US and other countries like the UK, and the EU, are moving full steam with talks to establish a Palestinian State, despite objections from Israel, and despite the fact that it would essentially be a reward to terrorist for the horrors of October 7. The US is already beginning to sanction Israeli settlers in Judea and Samaria, calling their “extremism” a “national emergency.”

What could a unilateral declaration opposed by Israel lead to? Could we start seeing sanctions against Israel from nations that currently purport to be allies? Could the BDS (Boycott, Divest, and Sanctions) movement finally go mainstream?

The call to lovers of Israel, lovers of the truth, is clear. Will we stand by as Israel is publicly attacked and shamed in our countries and hometowns? Will we allow the boycotts to harm Israel and be silent as sanctions are levied against Israel? It’s time, now more than ever, to be a bold voice and provide strength to Israel. Let’s continue to do all we can to speak up, and then put our money where our mouths are!