As the US recognizes Jerusalem as the Israeli capital, the city’s divided economy is likely to continue

President Donald Trump announced today he is starting the process of moving the United States Embassy in Israel from Tel Aviv to Jerusalem. It’s part of a shift in American policy, acknowledging Jerusalem as the capital of Israel. Most other countries don’t recognize the city as Israel’s capital because it’s disputed territory, and the Palestinians hope to one day use part of the city for a capital of their own state. Those disputes and divisions also mean that Jerusalem’s economy is something of a tale of two cities, with very different opportunities for Israelis and Palestinians.

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