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Israel's next government faces heavy debt, high defense costs

With estimated war costs of NIS 350b and public debt near 70% of GDP, Israel’s next government must balance surging defense spending with urgent education and labor market reforms.

  • Israel's next government faces NIS 350 billion in fiscal costs from 2023-2026 war.
  • Public debt nears 70% of GDP, posing significant fiscal challenges.
  • Defense spending projected to consume 8% of GDP in 2025, limiting civilian spending.

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