Gaza Conflicts Economic & Human Toll Detailed in Reports

The conflict between Israel and Hamas, which began in October 2023, has resulted in extensive financial costs and a significant humanitarian impact, according to figures released by government bodies, academic institutions, and international organizations. Data from the Bank of Israel, the United Nations, and other sources detail the economic effects on Israel, the cost of international aid, and the scale of destruction and casualties within the Gaza Strip.

The Gaza Health Ministry has reported that more than 72,000 people have been killed in Gaza since the conflict began. United Nations officials have described the humanitarian situation in the territory as severe, pointing to widespread food and water shortages.

The Bank of Israel calculated the total economic cost of the war to the nation at approximately 352 billion shekels ($112 billion). This figure includes an estimated 243 billion shekels ($77 billion) in direct defense spending, 57 billion shekels ($18 billion) in civilian expenditures, 33 billion shekels ($10.5 billion) for property tax compensation, and 19 billion shekels ($6 billion) in interest payments.

Early in 2024, Gil Pinchas, Israel’s former chief military economic adviser, estimated the direct cost to Israel had reached 150 billion shekels ($48 billion), averaging 300 million shekels ($96 million) per day. Pinchas also noted that Israel had allocated 340 billion shekels ($108 billion) for munitions since the start of hostilities, though not all have been expended.

A major component of the economic impact stems from military mobilization. Israel deployed upwards of 300,000 of its 465,000 military reservists during the first year of the conflict, in addition to its 170,000 active-duty personnel. Israel’s treasury reported that 70 billion shekels ($22.3 billion) has been spent on its reserve forces. The Bank of Israel estimated the cost in lost economic production for one month of service for a single reservist is about 38,000 shekels ($12,100).

Looking at future costs, a column in the Israeli newspaper Haaretz suggested that the total economic impact of the war could reach a minimum of 500 billion shekels ($159 billion) over the next decade.

The United States has also provided substantial financial support. A 2024 report from Brown University’s Costs of War project stated that since October 7, 2023, the U.S. has provided Israel with approximately $21.7 billion in military aid. The report added that U.S. military operations in the region in support of Israel have cost between $9.65 billion and $12.07 billion, bringing the total U.S. expenditure to a range of $31.35 billion to $33.77 billion.

Regarding the aftermath in Gaza, the United Nations has estimated that rebuilding the territory would cost approximately $70 billion and take decades to complete. A UN report noted that Israeli military operations have damaged a majority of buildings and that the population of 2.3 million people faces what it termed “extreme, multidimensional impoverishment,” which encompasses a lack of access to clean water, sanitation, and education in addition to financial hardship.