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Israel’s economy is struggling. Economists say ending the war would help

By JULIA FRANKEL, Associated Press
Published: August 26, 2024, 8:02am
3 Photos
Guests swim and sunbathe at the pool at the American Colony Hotel in east Jerusalem, Sunday, Aug. 18, 2024. As Israel’s economy is suffering from the nearly 11-month war with Hamas, Jerusalem’s iconic American Colony hotel has had to lay off workers and are mulling pay cuts, said Jeremy Berkovitz, the official representative of the owners.
Guests swim and sunbathe at the pool at the American Colony Hotel in east Jerusalem, Sunday, Aug. 18, 2024. As Israel’s economy is suffering from the nearly 11-month war with Hamas, Jerusalem’s iconic American Colony hotel has had to lay off workers and are mulling pay cuts, said Jeremy Berkovitz, the official representative of the owners. (AP Photo/Mahmoud Illean) Photo Gallery

JERUSALEM (AP) — In Jerusalem’s Old City, nearly all souvenir shops are closed. In Haifa’s flea market, forlorn merchants polish their wares on empty streets. Airlines are canceling flights, businesses are failing and luxury hotels are half empty.

Nearly 11 months into the war with Hamas, Israel’s economy is struggling as the country’s leaders grind ahead with an offensive in Gaza that shows no signs of ending and threatens to escalate into a wider conflict.

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