In Israel, the decline of the tech sector weighs on the economy

In Tel Aviv

For Israel, the ‘start-up nation’, it’s bad weather. After years of slow growth, some fear that the bubble will burst. Investments in high technology are declining, layoffs are increasing, the Nasdaq, the barometer of the sector, is at half mast.

A half-deflated balloon in the form of a unicorn lying on the ground: this photo published by Globesa business daily, sums up the prevailing anxiety, like the mythical animal used to designate the start-up whose value exceeds one billion dollars. Most indices have turned red. Investment in start-ups in the first half fell below $10 billion, down 30% from the last six months of last year.

Read alsoHow the war in Ukraine is weakening Israel’s tech sector

Companies have laid off several thousand engineers and other developers, whereas this sector previously suffered from a serious shortage of labour. Sign of these difficult times: calcalist