One month after experiencing one of the most critical moments in its recent history, Israel is trying to regain a sense of stability. Following more than 12 days of direct confrontation with Iran, a historically unprecedented event, the country is still grappling with the economic, social, and emotional toll of multiple ongoing conflicts that have escalated since October 2023.
According to various analysts, the economic situation remains challenging. Massive military spending, combined with disruptions to economic activity and the suspension of international flights during the conflict with Iran, has left a mark. Many businesses have yet to fully resume operations, and key sectors such as tourism, construction, and agriculture have been particularly affected. Adding to the difficulties is a growing labor shortage, caused by the mobilization of reservists.
In 2024, Israel became the second country in the world in terms of security-related spending. To cover the growing costs of war and defense, the government raised several taxes. VAT increased, along with health and social insurance contributions. While these measures aim to stabilize public finances, they have also made life even more expensive for ordinary citizens. Vulnerable groups such as single mothers, elderly pensioners, young families with children, and new immigrants are being hit the hardest. In a country where the cost of living is already among the highest in the world, these added burdens are pushing many households to the brink.
Despite this, the Israeli economy has shown a degree of resilience, largely thanks to its high-tech sector, which remains the country’s main economic engine. Experts note that while some companies are reconsidering their presence in Israel due to security concerns and rising taxes, long-term investor confidence has remained cautiously optimistic. Still, the future is uncertain and recovery will largely depend on regional stability.
In the midst of this harsh and uncertain reality, City of Life remains close to the families who are struggling the most. We stand with them, not just in words but through consistent presence and care. Our heart is to bring comfort where there is pain and to offer strength where hope feels distant.
We believe that even when everything feels unstable, God’s love is still constant. It is this love that moves us to keep going, to stay by the side of those who feel forgotten and to remind them that they are not alone.
