Israel’s economy is in good condition, although several steps are needed in order to reduce poverty and close living standards gap. The OECD Secretary-General Mr. Angel Gurría presented the Economic Survey and its conclusions, as part of his visit in Israel, to Prime Minister Benyamin Netanyahu.
The SG’s presentation appoints out further several issues that Israeli officials may decide to adopt. For example, it emphasis the importance of keeping macroeconomic frameworks supervised and implementing crucial structural reforms in several policy areas such as: education, social system and the competition policy.
“With strong growth projected for the coming two years and unemployment at historically low levels, the near-term outlook for the Israeli economy is very auspicious,” the OECD Secretary-General said. “To increase well-being and reduce socio-economic gaps, all citizens must have access to good education and opportunities to develop skills. Making work pay is the way forward,” he added. The full speech is available here.
The survey encourages the Israeli government to remain focused and determine concerning the housing market. It also suggests recognizing possible risks in the financial market. When the global market will become more stable, the OECD researchers derive that the Israeli monetary policy should be tightened. Furthermore, it needs to stop its intervention in the foreign currency market.
Besides that, in fiscal measures, Israeli officials should increase revenue, especially after 2014. It needs to assist competition in retail supply chains and reforming the electricity market. Concerning the gas sector, the survey warns against the provision of implicit fuel subsidies.
The Economic Survey refers in more depth to essential issues including tax and health system, ageing, and social allowances. You can find the full edition available here.