Goods that are being shipped to Europe, mainly the European Union, are being affected the most. EU members are continuing to campaign for boycotting the settlements.
Officials in Israel describe that situation as being disastrous for the settlements built on the occupied land of the Palestinians.
The social, economic, investment and academic boycott of the different settlements or colonies is increasing worldwide.
The Central Statistical Office and the Israel Export Institute showed new data at the end of last week that indicates that the decline over the first four full months of this year was 35%, compared to the same four months last year.
This has prompted the government of Israel to offer some form of financial support for those settlement and their respective investors.
According to the Finance Minster of Israel, Yair Lapid, the cost annually to the economy amounted to almost $20 billion with a loss of close to 10,000 jobs.
The Italian and Spanish governments warned citizens in their countries this past Friday against doing any business with the settlements of Israelis in the West Bank, Golan Heights and in East Jerusalem.
This warning comes after a similar one was given by the government of France.
Khaled Alalami an Israeli affairs researcher said the economy in Israeli has experienced a rather large decline over the past few months in areas that include purchasing power, foreign trade, cost of living indices and in trade balance.
The only statistic that has been able to remain steady has been unemployment.
With the current unrest in Israel following the kidnapping and murder of three Israeli teenagers, the economic problems will only add to the tension in the West Bank between the Palestinians and the Israelis.
On Tuesday, Israel hit the Palestinians with over 40 airstrikes in retaliation for the three teens who were killed and their bodies located on Tuesday.