A new report from the Bank of Israel, released Thursday, breaks down the economic effects of the COVID pandemic on Israel's economy, by sector.
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The central bank characterized businesses most seriously affected as "close branches" – sectors of the economy whose ordinary operations entail a high risk of spreading the virus. Most of these are part of the leisure sector (hotels, airlines, restaurants, bars, clubs, etc.). Prior to the beginning of the COVID crisis in Israel, this sector employed some 30% of all workers in Israel and made up some 20% of the country's GDP, the bank reported.
Based on the report's data, the second nationwide lockdown during the High Holidays of 2020, had a detrimental effect of some 21% to these businesses' revenue and 14% in terms of employment.
In comparison, businesses in other sectors saw a near-zero effect on revenue and only a 7% effect on employment as a result of the second lockdown.
The bank noted that the drop in revenue and layoffs could not be attributed to any non-COVID factors, as the sector had seen growing demand for its products and services in the years prior to the pandemic.
"This finding highlights the need to make it possible for these businesses to survive at a time of crisis, through government aid," the report said.
Of all Israel's employment sectors, high tech felt the pandemic the least, the report said, and even saw growth of 5.8% in 2020.
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