by Richard Brown, Natural News:
Forty-six thousand Israeli businesses have been forced to close due to the ongoing war and its devastating impact on the economy, Hebrew-language newspaper Maariv reported on July 10, describing Israel as a “country in collapse.”
“This is a very high number that encompasses many sectors. About 77 percent of the businesses that have closed since the beginning of the war, roughly 35,000, are small businesses with up to five employees, and are the most vulnerable in the economy,” said Yoel Amir, CEO of CofaceBdi, an Israeli information services and credit risk management firm to Maariv. (Related: Israel’s DEBT has doubled to nearly $43 billion since declaring war on Gaza.)
TRUTH LIVES on at https://sgtreport.tv/
The report highlights the most affected industries, with the construction sector and its related ecosystem, including ceramics, air conditioning, aluminum and building materials, experiencing significant damage according to CofaceBdi’s risk ratings.
The trade sector, including services and industries such as fashion, furniture, housewares, entertainment, transport and tourism, has also been severely impacted. The report notes that “there is almost no foreign tourism,” with business damage prevalent across the country, affecting almost every sector.
The agriculture sector has also been hit hard, with the most affected being those that operate to Israel’s north and south, where active combat zones due to threats from Palestinian resistance and Lebanon’s Hezbollah have affected operations. These regions’ instability has further contributed to the economic downturn.
Amir estimates that by the end of 2024, 60,000 Israeli businesses could be shut down.
Hezbollah’s attacks have severely disrupted local business and education in the north, forcing tens of thousands of settlers to evacuate. “Our goal of draining the enemy’s economy has been achieved,” Hezbollah leader Hassan Nasrallah stated on July 10.
Additionally, the Yemeni army’s maritime operations have contributed to the economic decline, significantly reducing revenues at key ports like Eilat in the south.
Israeli economy shrinking due to war
In the final months of 2023, Israel’s GDP plummeted by nearly 20 percent. The threat of escalation with Hezbollah raises concerns that any full-scale war with the Lebanese resistance could plunge the economy even deeper into crisis. Recent video warnings from Hezbollah demonstrate their capability to target critical energy infrastructure, including oil refineries and gas tanks.
Data released back in February showed that Israelis sharply curtailed spending, travel and investment at the end of 2023 as Israel’s all-out war on Hamas militants in Gaza took a heavy toll on the economy.
The war halted economic growth, particularly with a massive call-up of reserves and tens of thousands displaced from border towns near Gaza and Lebanon due to constant rocket attacks from Hamas and Hezbollah.
