Israel's economy takes a hit: How the war devastated various sectors

The Israeli economy, which had attempted to market an image of prosperity in recent years, has been severely impacted since the start of Operation Al-Aqsa Flood by Hamas.

In terms of numbers, the war is estimated to cost Israel over $6.8 billion, according to the Israeli Hapoalim Bank. According to the Institute for National Security Studies, this number represents double the cost of the 2006 war, which lasted over a month.

As a result, Israel has lost the confidence of investors. It now requires investors to think twice before spending money in the country. Israel's image as a strong and stable economy has been severely tarnished.

Several sectors have been affected by the current war, including:

-         Technology and Startups: This sector, which makes up about a third of the Israeli economy, has taken a significant hit. Tel Aviv, which boasted its reputation as a tech hub due to the presence of major global companies like Facebook, Google, Apple, and Microsoft, has been adversely affected. Many of the young people in this sector have been called up for reserve duty in the Israeli military, leaving companies in a challenging position. Investments have also been put on hold, such as Intel's plans to build a plant near Gaza.

-         Tourism: The tourism industry has reached a near standstill as Israel remains at war. The ongoing airstrikes on Ben Gurion Airport have led to the suspension of over 40 international airlines' flights, and significant events and concerts have been canceled, including Bruno Mars' concert on October 7.

-         Energy: The energy sector has also suffered due to the closure of the Tamarveld natural gas field, as its processing facility is located near Gaza. 

These repercussions came when various sectors within Israel grappled with internal protests and political conflicts. This situation has caused the Israeli currency to decline by 3 percent once again after the war, despite the central bank's plan to inject $30 billion into the market to stabilize the situation.

The Israeli stock market, particularly bank stocks, has also experienced a significant drop. 

Moreover, the government deficit is expected to increase further due to the rising costs of financing the war.