Israel's economy is exhibiting a dual nature, with its high-tech sector remaining robust while a significant portion of the population faces economic challenges. The high-tech industry, which employs approximately one in nine Israeli workers, generates substantial revenue from international clients and has largely remained unaffected by the ongoing conflict. However, the broader Israeli economy, which relies on local consumers, has been significantly impacted.
More than two years after the conflict began in October 2023, about half of Israel's self-employed individuals report earning less than they did prior to the war, according to a survey by the Israel Democracy Institute. These individuals often work in sectors such as retail, agriculture, and small businesses that are directly dependent on domestic spending. These local businesses and their owners have borne a considerable burden as fighting flares up, leading to reduced economic activity.
Adi Degani, a former kite surfing instructor, exemplifies the struggles faced by many. He served in the military for over 400 days during the war, leaving his business in debt. To sustain himself, he took out a bank loan and is now working in construction, a stark contrast to his previous livelihood. His experience highlights the personal sacrifices made by individuals whose businesses are directly affected by the conflict's disruptions.