Economic Crises Persist in “Israel” Despite Gaza Ceasefire

Despite the implementation of a ceasefire agreement in Gaza, signs point to prolonged economic crises in the occupied territories. Projections indicate that inflation rates will remain elevated throughout the coming year. January has already brought a series of burdensome measures, including higher purchase taxes, increased costs for essential services, and other financial pressures. These developments are compounded by the economic setbacks suffered by the Zionist entity in recent months.

The so-called “Ministry of Finance” of the Zionist regime continues to release questionable data regarding financial deficits and inflation. However, a report by a Hebrew newspaper “Yedioth Ahronoth” featured a critique from Zionist economic analyst Gad Lior. He remarked, “There is significant skepticism about the reported inflation rate, considering the widespread surge in prices.” Lior further stated, “Something very strange is happening in Israel’s pricing sector. Across nearly every domain—from food items to household goods, entertainment, and dining—everyone is complaining about rising costs. So how is it that inflation dropped dramatically in December to an astonishing 0.3%, while prices continue to rise, even before factoring in January’s additional increases?”

Questionable Government Data

In his report, Lior highlighted potential discrepancies in the methodology used by the Zionist “Central Bureau of Statistics”, which operates under the Office of the Prime Minister. He noted that while there is no evidence of deliberate manipulation, “hidden factors in the data may be influencing the calculation of services and products.” He urged the Zionist government to reevaluate the composition of the consumer basket used to calculate inflation, ensuring it reflects the realities faced by all economic and social segments.

Meanwhile, another Hebrew newspaper “The Marker” published an analysis by economist Nati Tucker, who observed that “while the inflation rate of 3.2% was lower than expected, this marks the third consecutive year of high inflation or rates at the upper limit of the Bank of Israel’s target range of 1%-3%.” Tucker attributed this trend to the economic repercussions of the al-Aqsa Flood operation and the broader resistance efforts that have unfolded since late 2023, continuing into early 2025.

Tucker emphasized that the Zionist economy would continue to suffer long-term impacts. He warned, “Anyone expecting inflation to soon return to the low or negative rates of the past decade is likely mistaken.” Tucker added, “Price levels are rising far faster than in previous years, making high inflation a persistent phenomenon. This could become the new normal.” He stressed that these economic difficulties would affect not only the poorest segments of society but also middle-income groups, particularly those at the lower end.

Long-Term Challenges

Tucker also highlighted structural issues within the Zionist government’s fiscal policies. The failure to adjust tax brackets for inflation in 2025 will reduce the purchasing power of wage earners by approximately 3.5%. Combined with escalating prices, this will exacerbate financial strain. Tucker further warned that the lack of tax adjustments will extend into 2026, with any revisions in 2027 likely falling short of the cumulative inflation by that time. These trends suggest that economic challenges for the Zionist population and government will persist far longer than anticipated.

Military Expenditures Add to Economic Burden

Observers and economic experts underscore that the Zionist entity’s military spending will continue to strain its finances, even if the Gaza conflict ends permanently. Significant resources will be required for compensation payouts to soldiers and officers, including those killed, injured, or suffering trauma from the war. Moreover, the regime faces immense costs to rebuild its depleted military infrastructure, replenish ammunition stocks, and secure high-interest loans for defense procurement.

The sustained attacks by resistance factions across Palestine, Lebanon, Yemen, Iraq, and the Islamic Republic of Iran have inflicted severe economic damage. These operations have disrupted key sectors such as production, agriculture, tourism, trade, and investment. The ongoing maritime blockade and air transport crisis have paralyzed economic activity, causing wealthy investors to flee. Major cities, including occupied Umm al-Rashrash, Yaffa, Haifa, and Asqalan, once hubs of tourism and investment, are now described by Zionist sources as “ghost towns.”

These developments have eroded confidence in the Zionist economy. Analysts note that the occupied Palestinian territories are no longer seen as safe havens for investment or economic growth. Reports from Zionist media confirm that the aftermath of the Gaza war has driven nearly a quarter of the illegal settlers below the poverty line, according to “Latet” a Zionist organization.

Ultimately, the cascading economic challenges highlight the Zionist entity’s profound defeats across military, security, and economic fronts. The post-al-Aqsa Flood era will bring prolonged financial hardships, marking a stark departure from previous stability.