Israel’s genocide against the Palestinians accelerates the collapse of its economy

A prominent Israeli newspaper revealed on July 10, 2024 that 46,000 Israeli companies have closed their doors since the start of Israel’s #GazaGenocide against 2.3 million Palestinians. To date, it is of the strongest indicator to mark the acceleration and severity of damage to the Israeli economy. #ShutDownNation

At the pace of things, Israel’s 76-year-old settler-colonial and apartheid regime may not live to ‘celebrate its 100th anniversary’according to a recent report by Eugene Kandel, former head of Israel’s National Economic Council in the Prime Minister’s Office, and Ron Tzur, who was a senior government official. They depict “the picture of a total failure in systemsthe management and operations of the Israeli administration… a collapse. »

They argue that the demographics of the ultra-Orthodox community will determine the direction of a Torah nationalist state, leading to the mass migration of Israel’s “productive elite” like a “bank run.” They predict thatThe departure of some 20,000 brains would be enough for Israel to be deprived of high technology, academia and security.

Prominent Israeli economist Dan Ben-David says: “We will not become a Third World country, that will not happen again. Only 0.6% of the population are doctors, but who trains them? Senior staff in university research represent 0.1% of the population. High-tech workers represent 6% of the population. Together, this represents 300,000 people. All it takes is for a significant mass of these groups to choose to no longer be here tomorrow morning, and the State of Israel leaves the developed world. »

In June 2024, the tech giant Intel freezes construction of $25 billion factory in Israeldealing a “severe blow” to Israel’s “already damaged economy.” In 2022, Intel’s exports to Israel accounted for 1.75% of Israel’s GDP.

In February, the largest sovereign wealth fund in the world, Norway’s $1.6 trillion oil fund divested entirely (approximately $500 million) of Israeli bonds. More recently, two of the largest American churches, theUnited Methodist Church and thePresbyterian Church in the United Statesalso divested from Israeli bonds.

During Israel’s ongoing #GazaGenocide, more than 80% of Israeli start-ups suffered damagewith more than 50% of them with less than 6 months of liquidity. “Angel investors” fell 75% in 2023, and Growth capital investments in Israeli companies decreased by 32% year over year in the 1st quarter of 2024. #ShutDownNation

Norway’s largest pension company KLP divests $69 million from Caterpillar because of its implications in the human rights violations of Palestinians in Gaza and the West Bank.

In April 2024, Samsung Nextthe innovation branch of the Korean technology giant, announced wanting to close its operations in Tel Avivbecoming a further sign of the drastic fall in investor confidence in the Israeli economy.

The coffee chain Prêt à Manger scrapped plans to open 40 Israeli branches following news from the Palestine Solidarity Campaign (UK) announcing the launch of a broad boycott campaign against the company. Investing in apartheid Israel has always been immoral and illegal. Now this is also extremely risky! #BDS really works!

Translated from the article by the Palestinian BDS National Committee (BNC).