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Israeli economy suffers loss of just $3 million due to fighting with Gaza

By Mason White 2:30 PM July 9, 2014
Israeli factory on fire 

By: Aryeh Savir
The Israeli economy is proving to be extremely resilient to the ongoing fighting with Gaza, the Tazpit News Agency reported.

The Israel Tax Authority announced on Tuesday, that over 100 claims have been made as a result of damage caused by the rockets fired from Gaza.

So far, the damages have caused $3.44 million in losses.

The Israel Tax Authority has sent out their appraisers to provide initial assistance to citizens whose property has been damaged by the fighting.

At least 35 cars were destroyed, 52 structures were damaged and 12 claims were made regarding damage caused to agriculture.

Further damage was caused to municipal property and infrastructure. Two families whose homes were severely hit were evacuated to hotels.

Another heavy cost is the call up of IDF reservists. A cost of one reservist is estimated at 600 shekels ($175) per day. So far, some 15,000 reservists have been called up, with an option of expanding to a total of 40,000 soldiers.

The use of the Iron Dome anti rocket system has been proven as very effective in defending Israel’s citizens with a 90 percent accuracy rate, but is extremely costly as well.

In comparison, the Second Lebanon War cost 11.2 billion shekels ($3.2 billion), Operation Cast Lead cost 3.57 billion shekels ($1.1 billion) and Operation Pillar of Defense cost 2 billion shekels ($580 million).

The general economy is also affected by the fighting, although Israel’s government is doing its best to maintain a state of ongoing business.

Minister of Economy Naftali Bennett issued a special order that forces workers to show up in industries considered vital to the economy. Minister of Transport Israel Katz, instructed the director of the port of Ashdod, Yitzchak Blumenthal, to immediately suspend the chairman of the workers union Avinoam Shushan, who illegally instructed employees to leave their jobs due to the security situation.

The Minister instructed the workers to return to work immediately and said that Shushan’s conduct was scandalous and made the illegal decision on his own.