Israel At War with Its Own Economy
The war is taking its toll on Israel’s most productive sector, its technology investment sector. This will affect the economy of Israel and the world in a negative manner.
Events have escalated to such a bad state, the army has had to return many of its troops to the civilian workforce. Returning the troops isn’t a new war tactic but its rather saving the economy of Israel.
What Israelis are facing is an economic war that is caused by a labor shortage and safety reasons. In a discussion with Inside Telecom Dr. Sami Nader, Director of Institute of Political Science at Saint Joseph University; Managing Partner at OAK Associates he stated that “Israel started from a solid background with $550 million GDP. The war took its toll due employees going to war.”
Dr. Nader continues to state that the more the war advances the higher the risk of shrinkage of the economy of Israel. It is a clear fact that Israel has the most developed economy in the Middle East but with the labor shortage and the country being a war zone, where are they headed to?
Where is Israel Going
Israel has been a hub for the world’s top tech companies. According to Dr. Nader “Multinational companies that operate in Israel will reach a freeze in their operations due to security risks.”
The war has in fact scared and worried foreign investors, along with tech startups who aren’t able to invest in Israel or keep operating. Israeli’s claim that the war has been a drag on their tech investments. From launching 1,300 to 1,400 tech start-ups yearly, Israel’s tech sector was only able to launch 400 in the previous year.
The October 7 war has had its huge consequences on Palestinian lives, and its having its consequences on the life of the Israeli technology investment sector. Would Israel take the risk of killing its tech sector to ‘win’ the war against an underdeveloped country?
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