Aug.21, 2012 | 3:45 AM–A war with Iran would directly cost the Israeli economy about NIS 47 billion, economists from the BDI-Coface business information firm estimated in a report released on Monday.

This would be compounded, they said, by a NIS 24 billion in lost gross domestic product every year for up to five years.

The total cost of a war with Iran , which anlaysts say is likely if israel stages an attack on Tehran’s facilituies, would likely reach NIS 167 billion, according to data released yesterday by the firm. The analysis is based on damage suffered by the Israeli economy during the Second Lebanon War in 2006.

But it assumes that any future conflict with Iran would imflict damage on the center of the country – not just the north, as was the case in the last Lebanon war.

Before the current insurgency in Syria, it was assumed that Syria might enter the conflict as well. But in light of the current situation, Syrian involvement is now considered less likely that Syria would join the fray.

According to BDI’s data, the Second Lebanon War, which lasted 32 days, cut Israel’s gross domestic product by 0.5%. In addition, it directly cost about NIS 8 billion in damage to civilian property and infrastructure, as well as the cost of actually waging the war, including replenishing weapon stocks…Read More>>

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