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

West 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.