Israel Business Data (BDI) calculates that the intifada has cost the Israeli economy $12 billion over four years. The Palestinian economy lost $4.5 billion in this period.
Palestinian GDP per capita fell 30% during the four years of the intifada. BDI says the intifada cost the Palestinian economy three times as much, relative to its size, than it cost the Israeli economy.
The average risk level in the Israeli economy is 33% higher than on the eve of the intifada in September 2000. The business risk level rose from 4.61 in September 2000 to 6.14 in October 2004.
Israel's GDP per capita did not fall, but potential growth per capita was reduced by 11%. On the basis of this calculation, were it not for the intifada, Israel's GDP per capita would have now reached $18,500, instead of the current $16,700 - almost the same as the $16,650 GDP per capita on the eve of the intifada.
The actual loss to the Palestinian GDP per capita was $1,200 in this period, compared with the potential loss only to the Israeli GDP per capita.
Published by Globes [online] - www.globes.co.il - on November 14, 2004