War & its Effects
It’s been almost a year since the Israel-Palestine conflict reignited. While the conflict severely affected the global business realm, the dust is starting to settle down. The majority of the multinational corporations (MNCs) in the country claim that they see limited impact from war. Israel has more than 400 MNCs operating in the country, including giants like Intel Corp, Nvidia, Google, Microsoft, Hewlett-Packard, Applied Materials, IBM, Philips, and Apple. According to a new report by Israel Advanced Technology Industries (IATI), the MNCs in the country employ around 86,000 people and make up about 18 percent of the high-tech force.
According to a poll conducted by accounting firm Ernst & Young, 60 percent of the surveyed managers said the war had minimal impact on their business in Israel, 30 percent responded that the impact was limited, and 10 percent said it was severe.
However, the Central Bank of Israel recently predicted that the country’s gross domestic product (GDP) will grow by less than previously anticipated. The growth will be restricted to 1.5 percent in 2024 and 4.2 percent in 2025— with a cumulative decline of 1.3 percent. This setback will likely take Israel’s economy further away from growth in the coming years, as Bank of Israel Governor Amir Yaron mentioned. This report also shows that the intensity and duration of fighting in the Israel-Hamas war may increase. However, Israel’s corporate sector has been resilient to the circumstances, and we shed light on the stories from the segment through this special yearly issue.