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33,000 companies have been closed in Israel since January: The effects of the war have destroyed the local economy

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The independent forum of the “Histadrut” union, the largest union union in Israel, revealed through the i24NEWS channel, that 33 thousand companies have closed their doors since January 2025, compared to the opening of only 19 thousand, which means a clear deficit of 14 thousand companies during the first half of the year.

Decreased returns and a clear effect in the border areas

Nearly 30% of companies have reported a decline in revenue at a rate of no less than 25%. The most severe damage was in the northern regions (43%) and around Gaza (38.4%), as difficulties are increasing as a result of continuous security tensions.

The data indicates that about 19% of entrepreneurs have already thought of closing their business since the war began, while 32% of them have been a decline in commercial activity as a result of the current circumstances.

The most affected sectors: from agriculture to technology

The most affected sectors are those that depend on self -employment, such as the hospitality sector (60.8%), arts and entertainment (80.9%), municipal and administrative services (74.3%), agriculture (71.5%), in addition to construction and information technology.

Reserve mobilization, restrictions on Palestinian workers, and logistical interruptions have deepened the crisis. Yoel Amir of CoFaceBdi, a risk assessment company, explained that the effects of war affected all sectors without exception.

The absence of tourism and external provinces increases pressure

Among the most prominent reasons for decline is the high number of tourists, in addition to the economic provinces whose impact appears to be growing. Experts point out that the sectors that were known for their flexibility are no longer immune to the challenges.

Although the Bank of Israel expects 5% economic growth in 2025, the current indicators are concerned, especially about the ability of small and medium -sized companies to withstand if the crisis is long.

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