Economy ministry Review on Israeli Economy: Turkey's boycott has impacted Israel's import activity

In the wake of Turkey's boycott announcement against Israel and heightened tensions globally, the Ministry of Economy and Industry has published a comprehensive review detailing the state of the Israeli economy amidst the ongoing Iron Swords War. The report highlights the vulnerability of Israel's domestic product to global supply chain disruptions, particularly in sectors like manufacturing, notably the electronics industry.

The report reveals that Turkey's boycott has significantly impacted Israel's import activity, with the majority of products affected being construction materials such as cement, stone, and iron. Israel imports consumer goods worth $2.7 billion from Turkey, leading to concerns about product shortages in sectors heavily reliant on Turkish imports.

Mitigating Economic Threats

To address these challenges, the ministry proposes several strategies, including seeking alternative import sources, removing regulatory barriers to facilitate imports from other countries, providing assistance to affected businesses, and engaging in international trade forums to regulate imports effectively.

Business Activity Shows Resilience

Despite the economic strain, the report notes a continued increase in private consumption, with credit card purchases in Israel rising by 10% compared to the previous year. Most sectors have shown signs of recovery, although industries such as agriculture, leisure culture, and construction continue to struggle amidst ongoing security tensions.

Impact on Evacuated Settlements

The report highlights significant economic challenges faced by settlements evacuated from the northern border, with double-digit drops in business revenue reported in March. Credit card purchases in these regions remain below national averages, indicating ongoing economic hardship.

Employment Trends

While there has been a decrease in job seekers, the number remains 25% higher than pre-crisis levels. Evacuated settlements, particularly in the north, face more severe employment challenges. Job vacancies show a mixed trend, with growth concentrated in specific industries and a notable shortage of workers in non-academic fields, exacerbated by restrictions on Palestinian labor entry.

The Ministry of Economy and Industry's report underscores the need for proactive measures to safeguard the Israeli economy against ongoing security threats and global economic disruptions.