JERUSALEM, June 4 (Xinhua) -- An annual report issued Tuesday by the Israel Innovation Authority (IIA) reveals continuous growth in the Israeli hi-tech sector despite the country's ongoing conflict with Hamas in the Gaza Strip.
The report revealed a 2.6 percent increase in hi-tech sector employment in 2023, with the workforce climbing to 396,000 following the addition of 10,000 new employees last year.
Other positive growth indicators included the hi-tech sector's significant contribution to Israel's gross domestic product, which approached one-fifth in 2023. Moreover, the sector's share of Israeli exports reached 53 percent, amounting to a total of 73.5 billion U.S. dollars.
However, the report also pointed to a downturn in some indices related to key business activities, reflecting underlying concerns among companies and investors about the sector's future sustainability and growth potential.
Investment in Israeli startups saw a sharp decline of around 55 percent year-on-year in 2023, with later funding rounds being the most affected.
Furthermore, the impact of the conflict on tech companies has manifested in slowed business activity, delays in product development, and failure to meet initial goals, according to the report.
IIA CEO Dror Bin warned that the impact of the war, already reflected in the country's credit rating downgrade, could lead to a decrease in investments and capital inflows to Israel.
"In a sector reliant on foreign capital for growth, this is a significant threat," he added. ■
