Israel Defense Forces Budget and Economic Impact Amid Regional Tensions
The Israel Defense Forces (IDF), established in 1948, play a crucial role in Israel's economy, with a defense budget of approximately $46.5 billion for 2024, marking a 65% increase from the previous year. This represents about 8.8% of Israel's GDP, one of the highest ratios among advanced economies. By 2026, the defense budget is projected to reach around 112 billion shekels, reflecting both immediate operational needs and long-term modernization programs. The military spending drives the high-tech industry, though it constrains resources for other public policies.
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The Israel Defense Forces (IDF), formed in 1948, significantly influence Israel's economy and policy. The defense budget for 2024 is set at $46.5 billion, a 65% increase from 2023, constituting about 8.8% of GDP.
By 2026, the budget may reach approximately 112 billion shekels ($34-35 billion), accounting for immediate defense needs and long-term modernization. Military spending supports a thriving high-tech sector, fostering innovations applicable in civilian industries.
However, substantial defense expenditures limit funds for social programs and infrastructure. The IDF is seen as a key component of Israel's stability and economic growth.
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