The Palestinian uprising, now in its 18th month, has had adverse effects on the Israeli economy, according to the 1988 annual report released Wednesday be the Bank of Israel the country’s central bank.
A 4.2 percent decline of exports last year was among the most serious, Michael Bruno, the bank’s governor, told a news conference.
He said the loss amounted to $650 million, of which $280 million represented tourist dollars that were not spent in Israel because the intifada kept visitors away.
Tourism is an “invisible” export.
Furthermore, the climate of uncertainty arising from the ongoing violence deterred investors and consumers both foreign and Israeli from putting money into the economy, Bruno said.
On the other hand, business productivity was down only 1.5 percent, less than expected.
But the uprising cut Israel’s trade with the West Bank and Gaza Strip by abut 40 percent. Imports from the territories were down by 48 percent.
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