Organized crime costs Israel's economy around NIS 23 billion per year, data shows

Organized crime in Israel costs the economy approximately NIS 23 billion (about $6.2 billion) annually, according to newly released data. The report highlights that widespread criminal activity in the agriculture, construction, and housing sectors is a key driver of the rising cost of living in the country. The findings underscore the systemic nature of the problem, affecting supply chains, pricing, and market competition. The data was presented by Israeli authorities as part of broader efforts to quantify and combat economic crime. The impact is felt across multiple industries, with consumers bearing the brunt through higher prices for basic goods and housing.

Global Impact

Economically, the NIS 23 billion annual drain represents roughly 1.5% of Israel's GDP, a significant leakage that depresses growth and raises inflation. Politically, the data pressures the government to act, potentially leading to new anti-corruption legislation or task forces.