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Israel Now News is Israel's most comprehensive source for breaking news and current events from Israel and the Jewish world.

How Will the New Lockdown Change Israel’s Economy?

Liza Cablayan Journalist at Israel Now
Published on September 14, 2020
How Will the New Lockdown Change Israel’s Economy?
#Uncategorized

The lockdown that started last Friday is slowly crushing businesses, which includes restaurants and gyms, but some are thriving despite the national lockdown, such as alcohol and food stores. The situation became a driving force for businesses to improve on their processes, online presence and logistic services,

There are other businesses still ongoing despite the lockdown, and they have high hopes despite others closing down. The Startup Nation Central announced on Monday that they are conducting a study where they predicted that the increasing opportunities seen in online sales will point to a groundbreaking leap in cyber-security, and the pandemic is the reason for this growth.

The study also recommends financial incentives for such businesses so that businesses that are thriving and engaging in the digital age will remain in Israel instead of relocating to different areas. It is also recommending Israel to fund education programs focusing on women and groups to enter the high-tech market.

There were additional details of the study, such as recognizing AI and the Internet of Things, or IoT, as crucial strengths for the future. Although there are concerns of people who might not afford the digital revolution.

There is a larger issue in relation to the pandemic that it has disrupted the idea that young and old alike prefer to pay more to live a few blocks away from work in the big city.

Especially with the students. If their schools offer remote classes and no face-to-face option, then the next best option is to move back home and live with their parents without the need to pay rent.

During the pandemic, the worldwide economic decline was bad news. There are places where their creative classes are empty, and restaurants filled with cheap food thrive. High-end businesses close, opera singers and actors are not expected to stick around if they are not allowed to do what they are supposed to be doing.

There is a positive side to the whole pandemic, that there is a better delivery system and public transportation is alive for people working at home to get their needs whenever necessary.  There are also instances that some people get a break from paying the rent, or receive a tax refund from the city.