gaza ceasefire israel
A Palestinian family stands on rubble inside their damaged home after returning to Beit HanounReuters

The conflict in the Gaza Strip is estimated to have cost Israel and Palestine significantly.

According to estimates, the two countries have so far lost a combined $8bn (£4.7bn, €6bn) due to the conflict, with 75% of it suffered by Gaza, the Israeli newspaper Haaretz reported.

Moshe Asher, head of the Israel Tax Authority, said the country's Operation Protective Edge has cost the economy about 7bn shekels ($2bn).

Palestinian Deputy Prime Minister Mohammed Mustafa told Reuters that it would cost $6bn for the country to rebuild the destroyed Gaza region.

Asher told Israel's Channel 10 in an interview that the country's economic output would decline by about 4.5bn shekels due to the war.

In addition, tax receipts are expected to decline by another 1.5bn shekels.

Besides, the government will compensate businesses located within 40km of the Gaza Strip that suffered direct war damage.

In 2013, the country's gross domestic product totalled $ 291.36bn.

"Our estimates put the damage at 750 million to 1 billion shekels, but I believe the figure will go above 1 billion shekels," Asher said.

"Both the number [of claims] may rise and the amount of compensation the government will be required to pay to likely to rise, but not by huge amounts."

Many Israeli businesses in the war-torn region were forced to shut down or reduce work during the conflict.

Israel's tourism sector was particularly hit by the fighting, as many tourists cancelled reservations and airlines temporarily suspended service.

Finance officials have put the government's war cost at 4bn shekels for defence and 2bn for civilian expenses. However, it expects to cover the costs by reallocating funds in the 2014 budget rather than carrying over costs into 2015.

Meanwhile, Gaza suffered severe direct damage due to the crisis, as it lost thousands of homes, business, public institutions and water and electrical infrastructure, in addition to about 1,800 people died during the conflict.

About 400,000 Gazans are estimated to have lost their homes, according to Mustafa.

The country relies largely on donor aids to meet its huge reconstruction costs. Palestine GDP was worth $6.8bn in 2012.