The immediate impact of the Gaza war on Israel's economy will depend on the conflict's duration, but future potential issues -- like a prolonged Israeli occupation of the Gaza Strip and the resumption of controversial judicial reforms -- could further hinder economic growth in the medium-to-long term. The Oct. 7 Hamas attack on Israel sparked an unprecedented military mobilization of the country's economy, pulling 300,000 reservists from the workplace, drying up tourism, and halting many business deals and projects. Israel's finance ministry recently estimated that the war was costing the country $260 million a day. Not long after fighting began last month, the central bank also pledged to support the shekel with some $45 billion, or 20%, of the country's currency reserves. According to pre-war projections, the Israeli economy was set to grow 3% this year, but the fallout from the military conflict will now almost certainly result in a sharp...
