Israeli settlement economy hit by international boycott

Exports from goods produced on Israel’s illegal settlements have dropped significantly, official statistics have revealed. Goods going to the European Union are affected most, as the EU continues to campaign for a boycott of settlements. Israeli officials describe the situation as “disastrous” for the colonies built on occupied Palestinian land. The economic, social, academic and investment boycott of settlement-colonies is growing worldwide.

The Israeli Export Institute and the Central Statistical Office revealed data on Friday indicating that the decline during the first four months of 2014 was 35 per cent compared with the same period last year, prompting the Israeli government to offer financial support for the settlements and their investors. According to Israel’s Finance Minister, Yair Lapid, earlier this year, the annual cost to the economy is nearly $20 billion and the loss of nearly 10,000 jobs.

The Governments of Spain and Italy warned their citizens on Friday against doing business with Israeli settlements in the occupied West Bank, East Jerusalem and the Golan Heights, Israel’s Yedioth Aharonoth newspaper and Walla news agency reported. This follows a similar warning from the French government.

A researcher of Israeli affairs, Khaled Alalami, said that the Israeli economy has seen a significant decline over the past few months across areas such as purchasing power, the cost of living indices, foreign trade and even the trade balance deficit. Only unemployment statistics have remained steady.