Israel has incurred more than $57 billion in economic losses due to its two-year-long military campaign in Gaza, according to the Bank of Israel’s 2025 annual report, as cited by Bloomberg. The report states that from 2023 to 2025, the country lost about 177 billion shekels, equivalent to roughly 8.6 percent of its gross domestic product. The majority of this loss was attributed to the Gaza conflict.

The report did not include the economic effects of Israel’s ongoing war with Iran, which involves Israeli airstrikes and retaliatory attacks. Earlier in March, Israel’s wartime cabinet approved a revised 2026 budget allocating an additional $13 billion to fund the war. The Bank of Israel also noted that trade with eight European Union countries criticizing Israeli strikes on Iran fell by $1.5 billion in 2025.

The report further warned that exports to countries taking a critical stance toward Israel could continue to decline, reflecting early signs of reduced trade activity.