46,000 businesses closed in 'Israel' since October 7: Israeli media
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Thousands of businesses have closed down in "Israel" since the beginning of the war on Gaza, with more expected to close, further exacerbating the economic crisis in the Zionist entity.
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Israeli shop at a market in 'Tel Aviv', occupied Palestine, on February 21, 2021. (AP)
Since the beginning of the Israeli war on Gaza, 46,000 Israeli businesses have closed, according to the Israeli Coface Bdi company.
The company, specializing in business information for credit risk management, has been analyzing and ranking businesses and companies in the Israeli economy for approximately 35 years.
According to Maariv, Yoel Amir, the CEO of Coface Bdi, explained to Maariv on Wednesday that the number is considered a high number encompassing many sectors, with about 77% of the businesses closed since the beginning of the war, around 35,000, being small businesses with up to five employees.
Which industries are at the highest risk level?
Israeli media reported, citing Coface Bdi's risk rating, which is widely utilized by many companies in the Israeli economy, including the banking system and international credit insurance companies, that the most vulnerable industries are the construction industry and its surrounding ecosystem. This includes sectors such as ceramics, air conditioning, aluminum, and building materials, which have been significantly impacted.
According to the Israeli newspaper, the trade sector, encompassing fashion, footwear, furniture, housewares, and the service sector including cafes, entertainment, leisure services, and transportation, has been severely affected.
Additionally, the tourism industry faces nearly no foreign tourism, exacerbated by "declining national morale and tourist areas now resembling combat zones". Furthermore, the agriculture sector, predominantly situated in confrontation areas in the south and north, grapples with manpower shortages, as reported by Maariv.
Expected damage to the Israeli economy
According to the Israeli newspaper, "The damage to the Israeli economy is extensive on all fronts. When companies close and cannot meet their financial obligations, it ripples out to affect customers, suppliers, and others within their ecosystem." They added that aside from business closures, there has been a significant decline in activity across various sectors since the outbreak of the war.
"In a special survey of managers that we conducted recently, this is the third time since the war, it appears that approximately 56 percent of the managers testified that there has been a significant decrease in the scope of their activity since the beginning of the war," the report added.
The detailed breakdown shows that the construction industry was affected to the tune of 27%, the services industry by about 19%, and the industrial and agricultural sector by around 17%. The trade sector saw an impact of approximately 12%, while high-tech and advanced technologies experienced an 11% decrease. That said, the food and beverage sector was affected by only around 6%.
According to the report, "We estimate that by the end of 2024, approximately 60,000 businesses in Israel are expected to close."
The Israeli newspaper highlights numerous challenges, including labor shortages, declining sales, high interest and financing costs, transportation and logistics issues, shortages of raw materials, restricted access to agricultural areas in combat zones, absence of customers impacted by conflict, supply chain disruptions, increased procurement challenges, and more.
