Haifa Mayor Yona Yahav spoke about the serious economic losses the city has suffered in the current crisis. According to him, "Haifa has been hit by an unprecedented economic blow: closed stores everywhere, empty streets, and a standstill in trade." Yahav emphasized that the well-being of northern Israel is directly linked to the economic stability of the entire country:

"A strong Haifa is a strong Israel."

For more than a month, Haifa and other northern cities have been under regular shelling from Hezbollah in Lebanon. On Monday, Israeli media reported a significant rocket attack, with about 100 rockets fired at Haifa and the Krayot region.

The escalation of the conflict has taken a heavy toll on northern Israel. According to Yedioth Ahronoth, more than 80% of small business owners in the Eastern Galilee and the Golan Heights are experiencing serious income problems. Half of them have seen their income fall by more than 65% since the conflict began. The economic losses have affected all key sectors of the region: agriculture, industry, trade and tourism have suffered.

The ongoing attacks in the north and the shelling in Haifa have increased the burden on the Israeli authorities to compensate for losses. Data cited in a report by local authorities shows that from October 2023 to August 2024, the government paid out NIS 4,4 billion (over $1 billion) in compensation for indirect losses suffered by companies in the north of the country. This amount, however, does not include direct losses caused by damage to buildings and infrastructure from missiles and drone strikes, which is expected to lead to the closure of even more companies.

Israeli media also point to a significant increase in unemployment in the northern regions. According to Channel 12, the number of unemployed in the north since the start of the conflict has been 20% higher than in other parts of the country, which is causing additional concern and creating an acute socio-economic crisis in the northern regions of Israel.