Country snapshots 2017-18: Israel*

Growth pick-up to continue

The 2016 pick-up in growth should continue, reaching 3.25% in 2017-18. Support from slight budgetary easing, very low interest rates and measures to support the low-paid should continue to stimulate domestic demand and employment. However, the ongoing weakness of the international environment and the impact of exchange rate appreciation on foreign trade are projected to hold back export growth. 

So long as inflation remains low, an accommodative monetary policy remains appropriate to damp currency appreciation. The rise in mortgage rates induced by the macro-prudential measures adopted by the Bank of Israel to stabilise the property market is welcome. Reforms designed to increase competition in banking should be extended to other sheltered sectors (such as farming) to enhance supply and productivity and foster catch-up. Lowering the regulatory burden on businesses by simplifying complex administrative and licensing procedures should be further promoted.

GDP growth

2013

Current prices NIS billion

2016

  

2017

% real change

2018

  

1 059.1 3.3 3.4 3.3

* The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.

Visit www.oecd.org/eco/economicoutlook.htm            

©OECD Observer No 308 Q4 2016            




Economic data

GDP growth: -9.8% Q2/Q1 2020 2020
Consumer price inflation: 1.2% Aug 2020 annual
Trade (G20): -17.7% exp, -16.7% imp, Q2/Q1 2020
Unemployment: 7.4% Aug 2020
Last update: 13 Oct 2020

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