Israel :Cost of crisis over $1b : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread

Report: Cost of crisis over $1b. By Tal Muscal

JERUSALEM (October 27) - The current unrest, and its ramifications on the economy, could cost over over $1 billion, according to an estimate given by the Federation of Israeli Chambers of Commerce (ICC) to the Knesset Finance Committee yesterday.

The figure points to a loss of 1 percent in the gross domestic product (GDP).

The damage to the Israeli economy has been recorded in exports to the Palestinian Authority that were halted during the past month's violence. According to the report, exports to the PA amount to $1.7b., accounting for 7% of all exports and 85% of Palestinian imports. The cost to exporters is estimated at $5 million-$6m. a day.

Israeli suppliers have also incurred losses following Palestinian companies' failure to pay for goods, amounting to over NIS 200 million.

The tourism industry is expected to witness a sharp fall in revenues, as the repercussions of canceled trips and conferences in the hotel sector are estimated to be NIS 150m. per month.

In addition, the absence of some 45,000 workers will have a negative impact on construction projects.

-- Martin Thompson (, October 27, 2000

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