Bank of Israel: Intifada cost at least NIS 30 billion

[Gimel]

The intifada has cost Israel between NIS 31 billion and NIS 40 billion so far - not including defense costs - according to the Bank of Israel report for 2003, which was released on Tuesday. The amount comes to between 6.2 percent and 8 percent of the gross domestic product.

The report found that the intifada, which began at the end of September 2000, was one of the principal reasons for the recession between 2001 and 2003. The first areas affected were agriculture and construction, which lost NIS 12.2 billion from the beginning of the intifada until the end of 2001. Investments and private consumption were also hit hard. According to the report, confronting terror has required an increase in resources allocated to the defense industry. and has contributed to a significant increase in public consumption.

The decrease in GDP in 2002 alone ranged from NIS 3.1 percent to 3.8 percent, with 1 percent constituting about NIS 5 billion. But this statistic doesn't express the cumulative damage of the intifada or the potential growth it thwarted. The intifada-related decrease in GDP in 2003 alone was lower than in the previous year (between 0.7 percent and 1.8 percent), due to the relative calming of the security situation.

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[bpilgrim]

1. send more $$$

if we got any more left :shrug:

peace

[Aidoneus]

2. about US$6.3bil?

[Gimel]

3. In dollar values

divide the billions of shekels by 4.5. That is $6.7 to $8.9.

[Aidoneus]

4. ah

an older figure (Jan'03) I found was 4.8:1.. thanks for the correction there.

[tinnypriv]

5. Good

The more it costs Israel, the more likely it is to withdraw from the territories.

[Muddleoftheroad]

6. Quite the reverse

The more the Intifada costs, the more likely Israel is going to consider it a bigger threat and respond more aggressively. Bear in mind, this lost money means lost business, lost jobs and lost economic opportunity for both Israelis and Palestinians.

[bluesoul]

7. Israel can't

drag this forever. They will have to move out once. Unless they want generations of kids being afraid of being blown up on their bus because their idiot head of state can't see the obvious and change it's several decades long policy of occupation and demolishment. Hopefull those times will come sooner then later. The better for Israelis and Palestinians that REALLY want peace. I wish them that. Certainly ain't gonna happen with people like Sharon...

[Muddleoftheroad]

8. Forever is a long time

But Israel has no motivation to take action now because it is being offered nothing in return.

No matter what action Israel takes, it faces, "generations of kids being afraid of being blown up on their bus."

[bluesoul]

9. Years

1999,2000 (if we only look at the recent years) prove you otherwise.

[Muddleoftheroad]

10. Hamas

Would prove otherwise. They have sworn to destroy Israel. They are enabled, backed, supported and embraced by both the PA and, according to the latest poll, the Palestinian people.