The 50-day summer war between Israel and militants in the Gaza Strip caused a 3.5 billion shekel loss or 0.3 percent of GDP, according to a chapter published on Monday from the Bank of Israel's annual report.
The report said the only the Second Lebanon War caused greater damage to the economy, estimated at 0.35 to 0.5 a percent of GDP.
The majority of the economic fallout of Operation Protective Edge emanated from the tourism industry, with an estimated 2 billion shekels lost to decreased demand, and an overall decline in consumption of 1.5 billion shekels.
The economists at the central bank claimed the damage was not significant. The Bank of Israel noted that the size and scope of the losses showed that the Israeli economy has become more resistant to the effects of military operations than in previous bouts of conflict.
Additionally, bank analysts noted that the "damage to the output of tourism industries does not only occur during the fighting itself, but continues also – and principally – because the losses continue beyond them. The operations do not rehabilitate immediately, and only returns to its pre-fighting levels after a year."
The Bank of Israel further noted that during Operation Protective Edge the drop in consumption was sharper than during the Second Lebanon War. The analysts claimed the difference could be explained by the extended fighting last summer (50 days compared to 34 days in 2006) and the fact that the operational range of the rockets and missiles fired on Israel since 2006 was vastly extended.