The escalating conflict between Israel and the Palestinians after 11 September has had a devastating impact on the Palestinian economy. Many Palestinians were working in Israel, and the conflict, the curfews and the closed borders have restricted access to work and caused unemployment to soar. The Israeli economy has also begun to suffer from the effects of the war. The cost of the war has left a big hole in the Israeli government budget and damaged investor confidence in its economy. Unemployment is at a record high. Along with the end of the hi-tech boom, it has pushed the Israeli economy into its first recession since 1953.
BBC News Online business reporter Emma Clark examines the damage to the Israeli and Palestinian economies after September 11.
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