About a third of businesses were affected: this is how the war in Ukraine affected the Israeli economy

The economic activity of about a third of the industry in Israel’s industry was affected by the war between Russia and Ukraine. This was reported by the Central Bureau of Statistics, which published a survey of trends in business, following the war. According to a CBS survey conducted in April, about 9% of businesses in the industry indicated that the war between Russia and Ukraine had severely hampered their economic activity. These businesses belong mainly to the food manufacturing and metal products industries.

About 32% of businesses in the survey population were adversely affected to some degree, to a very small extent, by the war situation that began in Europe in February. The CBS noted that the impact on economic activity was higher in small businesses with up to 100 employees, compared with large businesses with more than 250 employees. The larger the business, the lower the rate of those who report an injury.

Destruction in Borodyanka, Ukraine (Photo: REUTERS / Zohra Bensemra)

The trend survey shows that there is considerable uncertainty about the possible harm to future economic activity due to the war between Russia and Ukraine. About 23% of businesses in the survey population indicated that the harm to future activity is unknown. In some of the industries directly affected by this situation, due to the use of goods imported from Ukraine and Russia, about 34% of businesses indicated that at this stage the vulnerability to future activity is unknown.

The survey also shows that about 29% of the businesses that participated in the survey reported that following the war, the prices of the raw materials, which their company uses to a large or very large extent, rose. In the manufacturing, construction and hotel industries, more than 37% of businesses indicated that following the war, the prices of the raw materials used by their company rose to a great or very great extent.

The segmentation shows that small and medium-sized businesses were harmed more than large businesses. More than 35% of businesses in the manufacturing industry indicated that the rise in prices of metal and aluminum had the most severe impact on their company’s economic activity.

Source: Maariv.co.il – כלכלה בארץ by www.maariv.co.il.

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