From a business perspective, how are Israeli companies positioned for a societal re-opening?
Israel has gone through three lockdowns in the space of a year, each lasting around four weeks. The impact, however, has been relatively muted compared with other countries (see ‘An economic snapshot’). With Israel’s society now reopening, a new normal is establishing itself in which digital transformation during the pandemic has left its mark.
Restaurants split their business between deliveries and on-site eating. Smaller businesses have shifted to digital delivery, cutting out intermediary vendors and bringing them closer to end customers. One of the big questions for consumer patterns will be – will we stick to ecommerce or will we go back to the mall?
If there are two things we have learnt from COVID-19, it is that we have a stronger sense of what we really value in our lives, and it has taught us the value of human interaction. I expect the latter to flourish in Israel’s new normal.
Economic snapshot
In 2020, Israel saw a decline in its gross domestic product of around 2.5%. This was less than forecast, offset in part by a relatively robust year for the Israeli tech market, with its strong presence in healthcare and online financial services.
The effects of switching on large natural gas reserves in the Eastern Mediterranean (Leviathan gas field), as well as minimal dependency on tourism, also helped to shield the economy during the 2020 global economic slump.
That said, disruption brought on by waves of lockdowns clearly hit small and medium-sized enterprises as well as retail and hospitality sectors hard. We should also not ignore the socioeconomic as well as mental health impact that multiple lockdowns have had on society
