Israel's war with Hamas will cost the Middle East country about $67 billion in defense and civilian costs between 2023 and 2025, Bank of Israel Governor Amir Yaron said, according to the Times of Israel.
Yaron called the civilian war costs of the conflict that has been raging since Hamas invaded Israel on Oct. 7 "significant," and said they would be a budgetary burden.
He also said the country's future security budget will continue to grow.
"The government needs to make sure that it makes the right balances and budget adjustments in light of growing permanent security expenses," Yaron said, the publication reported.
About half of the cost - $32 billion - will be necessary to meet defense needs.
Another $10 billion will be needed for civilian spending until 2025 that includes evacuating civilians and providing housing and services to evacuees.
The bank also estimated that about $9 billion in lost tax revenue because of the fighting, and $6 billion will be needed to compensate for direct war damages.
An estimated $2.4 billion in expenses come from interest payments related to the government's debt level and increasing borrowing costs.
The $67 billion figure has outpaced the previous estimate of $56 billion set at the beginning of 2024.
