Israeli companies see sharp revenue decline amid aggression on Gaza

By Al Mayadeen English
Source: Agencies
2 Nov 2023 09:24
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Economists predict a significant Israeli economic downturn and substantial government deficits as concerns grow over a prolonged war on Gaza.

An undated photo of a man holding Israeli shekels. (AFP)

In a recent survey conducted by the Central Bureau of Statistics in "Israel", it was found that around 50% of Israeli companies experienced a significant drop in their revenues amid the aggression on Gaza. Notably, the construction and food services sectors were the hardest hit, with more than 70% of the surveyed companies reporting a revenue decrease of over 70%.

Small businesses were particularly hard-hit, and "Israel" faced a shortage of workers as hundreds of thousands of Israelis were called up for reserve military service. About 11% of companies stated that 21% of their workforce had been called up for military service.

The construction sector, heavily reliant on Palestinian labor, suffered a severe blow, particularly due to the restriction on Palestinian entry into occupied territories from the West Bank. Work at several construction sites came to a halt at the beginning of the aggression, and the resumption of work has been slow.

It's worth noting that the survey was sent to 1,680 companies and conducted from October 24 to 26.

Israeli economy in crisis

Earlier, French newspaper Le Monde, in an article by Julien Bouissou and Vanessa Vagau, discussed the economic disruptions faced by the Israeli economy due to the aggression on Gaza, highlighting a crisis in the Israeli technology sector.

Furthermore, Britain's Financial Times reported that economists anticipate a significant contraction in the Israeli occupation's economy and a substantial government deficit, with increasing concerns about a long-term war.

The newspaper added that "Israel’s" bars and restaurants were forced to close, and hundreds of flights were canceled in the wake of Operation Al-Aqsa Flood.

The Financial Times had previously mentioned that traders increased their bets against the Israeli shekel, putting pressure on the Bank of "Israel" to keep interest rates unchanged and stabilize the currency, despite the looming cost of the war on the economy.