Political Analysis and Global Affairs

 A new war economy is emerging. But money may not be the real limit. Israel war economy sustainability is no longer a theory. It is unfolding in real time, and the numbers are unsettling. The country is spending around NIS 1.5 billion every single day on war. Its defense budget has surged to NIS 177 billion , the highest in its history. On paper, that should strain any economy. It hasn’t. Not yet. That gap between expectation and reality is where the real story begins. The Financial Base: Stronger Than It Looks At first glance, prolonged war should drain a country. Israel’s case is different. $234.55 billion in foreign exchange reserves Roughly 38% of GDP A net external asset surplus of $331 billion Debt approaching 70% of GDP , but still manageable According to the Bank of Israel and Moody’s (2026 outlook) , investor confidence remains intact. Israel recently raised $6 billion in international bonds , and demand was strong. This is not an economy on the edge. It is o...