Settlement expansion, Jewish terror pose severe risk to Israel’s economy, senior economists warn

Jerusalem Post/Israel NewsA group of 61 senior economists warned that expansion of settlements, as well as failure to prevent Jewish violence in the West Bank, will carry a "high economic cost" for every Israeli citizen.Follow us on GoogleIsraeli security forces guard as Jewish visitors tour the West Bank city of Hebron, October 10, 2026(photo credit: WISAM HASHLAMOUN/FLASH90)OCTOBER 18, 2026 13:33Updated: OCTOBER 18, 2026 13:59West Bank settlement expansion and rising Jewish terror against Palestinians could expose Israel to sweeping international sanctions, deepen its economic isolation, and drive up the cost of living for all Israelis, a group of 61 senior economists warned in a letter published on Sunday."The damage to Israel's economy could increase by orders of magnitude if such measures spread from a handful of countries to a significant portion of Europe and extend beyond the settlements to the Israeli economy as a whole," the letter read."The expansion of settlements in the West Bank and the failure to prevent Jewish violence and terrorism against Palestinians are causing diplomatic damage to Israel, contributing to its international isolation, and carrying a high economic cost that will ultimately be borne by every resident of the country."This damage must be prevented now, while there is still time," the economists added, noting that the momentum is building in the international sanctions movement."There are currently approximately 100 sanctions imposed by more than 50 countries," they said. "Financial measures and restrictions on arms transactions feature prominently among them."The letter further called attention to the expansion of the United Nations' blacklist of companies linked to Israeli settlements, which as of now "includes 214 companies from 11 countries, most of them Israeli, including all Israeli banks and Tnuva.""These measures add to an atmosphere of boycotts that is already harming Israeli academia, including fields essential to the high-tech industry," the economists said.The sanctions and boycotts further harm Israel's defense industry and cultural sphere, according to the letter, citing the INS Drakon submarine's delivery delays and artists refusing to perform in Israel.This is a developing story.Follow us on Google