This article discusses the economic impact of Operation Al-Aqsa Storm on Israel, including the decline in tourism, stock market performance, potential credit downgrade, and the risk of recession.
The Operation Al-Aqsa storm has had a devastating impact on Israel’s economy, particularly in the tourism and production sectors. Lasting for over a month, this operation has resulted in unprecedented economic damage, according to experts within the country.
The loss and economic stagnation currently being experienced by Israel are believed to be unparalleled in comparison to previous periods. In this article, we will explore the extent of the damage inflicted on Israel’s economy and delve into the factors contributing to this unprecedented crisis.
One of the most evident outcomes of the Operation Al-Aqsa storm for Israel is the significant economic damage it has caused.
The Israeli regime is grappling with the consequences of this war and is deeply concerned about its impact on vital sectors of the economy. In this article, we will examine the economic repercussions of the Operation Al-Aqsa storm and the challenges Israel faces in mitigating its effects on key sectors.
Operation Al-Aqsa Storm: Mobilizing the Israeli Workforce; Impact on Economy.
The Israeli cabinet’s call for the mobilization of 350,000 reservists during the Gaza war has resulted in an 8% reduction in the Israeli workforce.
A recent survey conducted by the Israeli Central Bureau of Statistics reveals that nearly half of Israeli companies have experienced a significant decline in income during this period.
Israeli companies experienced a significant decline in income due to the Operation Al-Aqsa Storm[/caption]
Among the hardest-hit sectors are construction and food services, with a staggering 70% decrease in their income since the start of the war. Small businesses suffered the most from the economic impact.
According to a survey conducted on Israeli companies’ earnings following the Operation Al-Aqsa storm, approximately 11 percent of the participating companies reported that 21 percent of their workforce had been called up for military service.
The data further reveals that around 1.3 million workers were absent from work during the first week of the war, followed by 1.1 million workers in the second week, and approximately 770,000 workers in the third week of the war.
As per a research report published by the Bank of Israel, the Operation Al-Aqsa storm has resulted in the absence of numerous workers from their jobs, causing a significant economic impact. The report estimates that this absence is costing the Israeli economy approximately NIS 2. 3 billion ($600 million) per week, which accounts for around 6 percent of the weekly GDP.
The construction sector, which heavily relies on Palestinian labor, has been particularly impacted due to restrictions on the entry of Palestinians from the occupied West Bank into Israel. This has further exacerbated the challenges faced by the sector.
