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The Effects of the Gaza War on Israel’s Economy – Snapshot

By:

Col. (Res.) Dr. Ronen Itsik

29 May 2025

Analysis
About The Authors

Col. (res.) Dr. Ronen Itsik

Head of the Military Social Relations Department

Israel’s economy stands predominantly on the country’s prolific high-tech industry.
Some 14% of the country’s economy is made up of the high-tech sector, which is one of the economy’s main engines of growth, and responsible for a major share of government revenues. However, the war in Gaza saw vast numbers of that sector’s employees serve in reserves duty, meaning they were absent from their jobs for prolonged periods of time.

A country’s economy is one of the main pillars of its national security, and thus Israel’s economy is an inalienable link in the very existence of the State of Israel. The IDSF HaBithonistim movement set out to gain better understanding of the implications of the ongoing war on the economy of Israel.


For this end we interviewed senior member of the IDSF HaBithonistim movement – former Director General of the Ministry of Communications and IDF Chief Communications Officer, Brigadier General (res.) Nati Cohen on his views on this matter.


Although Israel is entrenched in a long-term multi-arena war, “we are viewing the return of investor confidence in the Israeli economy, especially because the country is at war”, asserts Cohen.


The economy plays a crucial role in creating optimal conditions for…

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