A representative of the Israeli Ministry of Finance warned that his country’s economy would suffer a major economic loss as a result of not allowing Palestinian workers to enter it, likely to reach 3 billion shekels ($830 million) per month, during a discussion session in the Knesset yesterday, Tuesday. This comes within the context of the economic repercussions of the ongoing Israeli aggression on the Gaza Strip.
The discussion, initiated by Likud MK Eliyahu Rabivo, aims to address the situation and policy regarding Palestinian workers in Israel, urging his government to make a timely decision regarding them, the Jerusalem Post reported.
Foreign workers
Rabivo stressed that the delay in making a decision in this regard greatly harms Israel’s economy, proposing to open the doors to foreign workers from various countries to compensate for the labor shortage in sectors such as construction, agriculture, and cleaning services.
He called on the government to choose between whether it will depend on Palestinian workers or not, in accordance with the principle of bilateral agreements with foreign countries, criticizing the lack of clarity regarding accepting workers from Gaza, and that despite the imposition of a closure on the West Bank, workers from Gaza are still They continue to enter, often arriving in conflict zones, hospitals and hotels.
For his part, Knesset Member Moshe Abutbul, Deputy Minister of Agriculture, supported the need for a clear decision, stressing the importance of workers in sectors such as agriculture, construction and nursing.
New tests
Nitzan Zook, head of a branch of Israel’s National Security Council, said that 160,000 Palestinians entered Israel before the war, but since the outbreak of confrontations, the West Bank has been closed off with exceptions only for essential businesses.
He added that the National Security Council has developed new tests and potential guidelines to allow the entry of up to 80,000 Palestinians.
The head of the Israeli Contractors Association, Raoul Sargo, expressed the severe difficulties facing his sector, as productivity reached only 30%, while work stopped on half of the construction sites.
Sargo said that the impact on Israel’s economy and housing market is significant, and will likely affect a million people directly and a large number of industries indirectly, warning that the matter may affect income from real estate taxes, and may lead to lawsuits being filed against the state.
It is noteworthy that the Israeli gross domestic product grew by 2.5%, on an annual basis, in the period from July to September, compared to the previous three months, and the previous estimate of 2.8%.
On a per capita basis, GDP grew by only 0.6% in the third quarter, according to data from the Israeli Central Bureau of Statistics.
It is expected that Israel’s GDP growth will decline to 2% or less in the full year 2023, compared to 6.5% in 2022, and the possibility that it will not achieve any growth or contraction in 2024 due to the negative impact of the war.
Since the “Al-Aqsa Flood” operation launched by the Palestinian resistance on the settlements surrounding the Gaza Strip on October 7, about 200,000 Palestinians – who were bringing cash amounting to 900 million shekels per month ($243 million) into the Palestinian market – have been prevented from going to the Palestinian market. Their places of work inside Israel.
