The Quietly Shrinking Israeli Economy

New Israeli Prime Minister, Benjamin Netanyahu

  

For the past few years, Israel has seen consistent economic growth between 4 to 5%.  Yet the economy, which is very high-tech and investment-oriented, is projected to actually shrink this upcoming year.  The Central Bank of Israel has continued to decrease interest rates and pushed forward an impressive stimulus package.  Economics have continued to remain in the background of the recent electoral campaigns, perhaps because all three main parties in Israel are promising reduced government budget and involvement in economic affairs as well as tax cuts. With right-wing Benjamin Netanyahu posed to take over from the centrist Tzipi Livni (which he has sucessfully done since the time of this article), there has been little evidence that economic issues will suddenly make it to the forefront.

 

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