The Bank of Israel warns: the defense budget may sink the economy - voila! Of money. "Government spending on defense in Israel is the highest, in terms of GDP, among the developed countries," the report explains.
The government deficit in 2023 amounted to 6.7 (4.1) percent of GDP. The increase in defense production and R&D comes at the expense of resources for the industrial and high sectors - Tech, where there is a shortage of workers from the start.