Excerpts from a FT article on the state of Israel's economy:
Loyal customers of Israel’s Atlas Hotels recently received an unusual email — a desperate plea for donations to save the company from collapse. Atlas has opened its 16 boutique hotels to 1,000 evacuees displaced after Hamas’s deadly rampage through southern Israel on October 7. When the government failed to defray the cost, it started a whipround. “We asked suppliers, contacts abroad, our employees and the Atlas A-list — our best customers — for help,” operations manager Lior Lipman said. The message was stark, he added: “If we can’t fund ourselves, the business will collapse.”
“A lot of building sites have been closed down by municipalities,” Tomer said. “They don’t want to have Palestinian workers there. They say people are upset at the sight of Arab workers holding heavy tools.”
Evidence is already mounting of the war’s destructive impact on economic activity. A survey of Israeli businesses by the Central Bureau of Statistics found that one in three had closed or were operating at 20 per cent capacity or less since it began, while more than half had reported revenue losses of 50 per cent or more. The results were even worse for the south, the region closest to Gaza, where two-thirds of businesses had either shut or reduced operations to a minimum. Meanwhile, the labour ministry says that 764,000 Israelis — 18 per cent of the workforce — are not working after being called up for reserve duty, evacuated from their towns or forced by school closures to look after children at home.
Evidence is already mounting of the war’s destructive impact on economic activity. A survey of Israeli businesses by the Central Bureau of Statistics found that one in three had closed or were operating at 20 per cent capacity or less since it began, while more than half had reported revenue losses of 50 per cent or more. The results were even worse for the south, the region closest to Gaza, where two-thirds of businesses had either shut or reduced operations to a minimum. Meanwhile, the labour ministry says that 764,000 Israelis — 18 per cent of the workforce — are not working after being called up for reserve duty, evacuated from their towns or forced by school closures to look after children at home.
And they are still spending money on packages to increase religious observance in schools. I guess we can pray for victory rather than boosting the economy to support the war effort.
Also you can't help stupid. Israel already has a shortage of 100k apartments every year and they are now refusing builders on account of their ethnicity. they can welcome higher rents after the war in addition to no or lower income on account of the war. A flat in Bat Yam (poorest city in central israel) with same number of bedrooms/square footage has the same value as my 2 bed flat in north london and israeli incomes are far less than London incomes so the crisis is already bad without people cutting off their noses to spite their face