Israel’s Economy is Strong, but its Inclusiveness is Low, Says OECD Survey
While the tech sector is Israel’s growth engine, to secure the future emphasis should be placed on education and infrastructure for disadvantaged groups, says the report
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Published Sunday, the report shows Israel’s real gross domestic product (GDP) development has surpassed the OECD average in 2006 and has since increasingly widened the gap. This is in large part thanks to Israel’s tech sector, which attracts many multinationals to the country and raises the average wage substantially. Unemployment has seen a consistent decline since 2004 and currently stands at around 3.7%. Public debt in Israel has also been on the decline since 2003, and is currently around 60% of GDP, compared to the OECD average of over 110%.
The report’s key recommendations, therefore, focus mainly on decreasing the gaps in education, with suggestions such as increasing the funding to disadvantaged schools and areas and making funding to the Jewish-Orthodox sector contingent on the teaching of core subjects at school; and on bettering infrastructure in disadvantaged areas to improve mobility, job prospects, and well-being.Israel’s current excellent economic status offers the country “a unique opportunity to prepare for the challenges of the future, by taking steps to raise productivity, improve social cohesion and guarantee high quality of life for all Israelis,” Mr. Pereira said.