Operation Protective Edge was launched by the Government of Israel on 8 July 2014. In this article we’ll elaborate the economic influence of the operation.
First and foremost, it is important to emphasise that Israel’s robust economy is continuing to operate normally, in spite of some inevitable damage to Israeli industry, particularly in the conflict zone. Financial activity continues unabated, with all regulatory and financial institutions continuing with business as usual.
The security situation naturally impacts economic activity to some degree. However, over the past few years, the Israeli economy has demonstrated exceptional resilience in the face of the challenges posed by various security-related events and most of the country’s industries succeed in compensating for the dip in activity during these episodes.
Locally, all government agencies are operating at regular capacity and the Haifa Port in Israel’s north and the Ashdod port in Israel’s south are operational while Ashdod port took measures to protect employees when circumstances dictate caution.
The private sector, including businesses and factories exposed to higher volumes of incoming rockets, are continuing to operate under current conditions. The financial markets- capital market and stock exchange- are operating regularly, and foreign currency clearing is proceeding as usual.
For those businesses that are concerned for their shipment, following a brief disruption to air travel to and from the United States, the FAA has re-assessed the situation. Flights are returning gradually to normal operation. El-Al Airlines, Cal Cargo Airlines, and DHL Aviation have been operating continuously throughout. For specific issues you can contact the commercial attaché at the embassy or consulate in your area.
On the international level, some business delegations have chosen to postpone their arrival until conditions return to normal. The State of Israel respects this decision and welcomes international delegations to reschedule visits when normal conditions are restored.
To conclude, the local and international investment community continues to show confidence in Israel’s robust and resilient economy, and currency remains stable. Authorities anticipate a return to full productivity and full and prompt recovery in the economy at large when normal conditions are restored.
Evidence analysed by the Bank of Israel clearly demonstrates that brief periods of unrest have little long-term impact on Israel’s macro-economic performance. The Israeli economy has illustrated its resilience and ability to recover promptly, while economic indicators do not reflect significant effects of Israeli military operations over the past decade.
The Israeli economy has learned to endure and even thrive in times of crisis. Israel remains an attractive destination for international investments.