Economic Strain Intensifies for Israelis and Palestinians Amid Ongoing Conflict



Economic challenges have significantly impacted both Israelis and Palestinians, as detailed in a recent report. The Gaza war’s outbreak at the start of the key travel season has drastically reduced tourism in East Jerusalem, affecting local businesses and guides. The conflict has heightened unemployment, particularly in the West Bank, due to restrictions on Palestinians working in Israel. This has led to a supply shock in the Israeli economy, with construction projects halted and debates over bringing in foreign workers. The Israeli government faces criticism for its handling of the conflict, as economic pressures mount alongside public protests against the government’s policies. The situation underscores the profound economic and social toll the ongoing conflict exerts on both communities.

  • Economic struggles are affecting both Palestinians and Israelis, with a significant impact on tourism, agriculture, and construction sectors.
  • The Gaza war’s timing has severely hurt tourism in East Jerusalem, leaving businesses that rely on pilgrims and tourists struggling.
  • More than 150,000 Palestinians from the West Bank, who previously worked in Israel, face unemployment due to entry bans following terror attacks.
  • Israel is considering flying in tens of thousands of workers from Asian countries to fill the labor gap, sparking domestic and ethical debates.
  • The conflict has led to heightened security measures, making travel and commerce between cities like Tel Aviv and Jerusalem more difficult.
  • Israel’s government faces criticism over its handling of the conflict, with economic pressures mounting and public protests growing in intensity.
  • Moody’s has downgraded Israel’s credit rating due to the conflict, indicating concerns over the country’s fiscal and political risks.
  • Despite the war, there’s a sense of community and resilience among Israelis, with efforts to support each other economically and socially.
  • The conflict poses a significant threat to the economies of both Israel and Palestine if it continues to drag on.

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