The turmoil following the massacre of Palestinians in Hebron threatens to cool off the red-hot Israeli economy as well as put off promising Arab-Israeli business deals. The economy grew at 12% for the second half of 1993 and was expected to tack on another 6% to 7% this year. But it could be set back sharply. The most vulnerable sectors are tourism, which has seen record volumes in the past two years, and construction, which grinds to a halt when, as now, Israel closes its borders to Arab laborers from the territories.

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