Israeli economy paralyzed, amid increasing Arab calls for boycotting Israel
In response to the ever-increasing massacres and brutal assaults launched by the Israeli occupation forces against the unarmed Palestinian people, businessmen called for adopting a unified stance on boycotting Israel.
Chairman of the Arab and Egyptian Chambers of Commerce Federation Khaled Abu Ismail has announced the boycott of all economic activities with Israel.
Studies are under way to find out means of dealing with the pro-Israeli economies, Abu Ismail noted.
Time is now ripe for an all-out economic boycott with Israel in light of the recent Israeli re-occupying of the Palestinian territories, according to businessman Mustafa Sallab.
On the other hand, the World Bank has warned that the Palestinian economy is close to total collapse, thanks to the continued Israeli siege imposed on the Palestinian territories. The impact of the economic blockade, in fact, goes beyond that of the direct-armed confrontations, according to the Bank.
If the Israeli closure of the Palestinian territories prolongs, it will consequently increase the urgent needs for relief to -$ 1.7 billion against $ 1.5 billion, recently provided to the Palestinians, the Bank noted.
The Palestinian Authority is actually bankrupt as the Palestinian tax revenues have declined to one fifth of the total revenues received, according to a report issued by the World Bank. The Palestinian savings, moreover, started to run out, while the due arrears by the Palestinian Authority hit $ 430 million, the Bank warned.
The GDP in the West Bank and Gaza is expected to plunge by 12 per cent against last year, whereas the unemployment rate increased three-folds over what it had been before the beginning of the Intifada, it added.
The real per capita income decreased by nearly 30 per cent, the lowest level since the late eighties, the Bank said.
However, the escalation of the Israeli attacks on the Palestinian people had in its turn a dramatically negative impact on the Israeli economy itself.
Reports have recently shown the Israeli economic institutions have been significantly paralyzed. Tel Aviv stock exchange indicator has declined on the average by 44 per cent, while the tel-tech indicator was also down by 29 per cent.
The Israeli Central Bank said that both domestic and external debts jumped by 96 per cent of the GDP. Moreover, the number of tourists visiting Israel decreased by 37 per cent in February due to the spree of violence in the region.
Uncertainty has also surged on the Israeli markets, while the Israeli sheckel is expected to decline further against the US dollar.
An Israeli economist expected that the economic rate may reach zero this year as the total GDP will be down by 2.4 per cent this year in comparison to 2001.