Up to 60,000 Israeli Businesses May Close in 2024 as War Takes Toll on Economy

Israeli business will be contending with the fallout of the months-long war with the Hamas terror group through at least the end of the year, which is expected to see as many as 60,000 businesses shut down in 2024, according to business information company CofaceBDI.

The bleak prediction comes as in the nine months since the outbreak of the war with Hamas following the brutal October 7 onslaught by the terror group, a total of 46,000 businesses had to already close as they struggled to stay afloat, with many hurt by a high interest rate environment, more expensive financing costs, a shortage of manpower, a sharp decline in turnover and operations, logistic and supply disruptions, and insufficient government assistance.

In comparison, a record 76,000 enterprises were forced to close during the pandemic in 2020, while in a regular, routine year, about 40,000 businesses a year are shutting down. “There is effectively no sector in the economy that is immune to the repercussions of the ongoing war,” CofaceBDI CEO Yoel Amir told Israeli media.

“Businesses are coping with a very complex reality: fear about an escalation of the war coupled with uncertainty about when the fighting will end alongside continued challenges such as staff shortage, low demand, growing financing needs, an increase in procurement costs, and logistical issues, and most recently the export ban by Turkey are all making it increasingly difficult for Israeli businesses to survive this period.” (TOI / VFI News)

“Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them. Are you not much more valuable than they? Can any one of you by worrying add a single hour to your life?” - Matthew 6:26-27