The expulsion of the Jews always backfires—as it did on pharaonic Egypt, medieval England, Habsburg Spain, Nazi and Stalinist Europe, Nasser’s Egypt, and on, and on.
And despite centuries of such persecution, Israel still thrives. A true miracle.
How was Pharoanic Egypt affected economically and socially after the expulsion of the Israelites? The dates are vagues, but assuming around 1100 BC, there was no decay
Then medieval England -- the Edict of Expulsion in 1290 expelled the entire jewish population of England (which was about 2000 souls) but this was about 0.2% of the population (population of England approximating 1 million in the 13th century) -- the economy was primarily rural and this expulsion of lenders didn't affect the economy
The expulsion from Spain did affect the Spanish economy because the world economy had progressed.
The Expulsion of Jews from Russia in the 1800s and moving them to the Pale of Settlement did badly affect Russia
And the expulsion from Arab lands was a deathblow to those lands
The reason is the level of sophistication of the economies and the role of Jews in those economies.