Measuring the Impact of War in Israel and Lebanon

While I previously wrote about the economic consequences of war in Lebanon and Israel a few weeks back, I did so without tangible economic numbers in hand to argue my case. But now with numbers from D&B Israel and the Israel Purchasing and Logistics Manager's Associations Procurement Managers index, we have real data available to us to analyze the actual economic impact of the conflict. According to the groups, the procurement managers index fell nearly 10% from its rate in July. The research and index attributed the war to "a sharp drop in employment and output" in the region. Exports also suffered, as the Port of Haifa was closed until last week (but it's now open again, which is a good sign for the Israeli export market). Based on these numbers, we can assume that the impact to the Lebanese economy was just as great -- and probably more significant -- given the wider spread impact of the war throughout that country. Let us all hope that a lasting peace will now be possible in the region, and that trade and free markets will prove the antidote to intolerance and aggression. Because when spend matters more than ideology and olive trees, we'll all be much better off.

Jason Busch

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