Finance Ministry sees growth remaining moderate

July 19, 2015 18:26


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user uxperience almost completely free of ads
  • Access to our Premium Section and our monthly magazine to learn Hebrew, Ivrit
  • Content from the award-winning Jerusalem Repor
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

Don't expect Israel's growth rate to bounce back up to the levels seen last decade. A Finance Ministry study released Sunday concluded that Israel's moderate economic growth rate is here to stay, at least through the medium term.

The study, released as part of a weekly economic update from the Finance Ministry, tackled why Israel's annual GDP growth has fallen from an average of 4.3% between 1991 and 2011 to roughly 3% since 2012.

The main drivers of the lower growth, according to the study, were lower labor inputs and a decline in R&D investment. Israel is near the bottom of OECD rankings on its labor productivity, which the Bank of Israel attributes in part to low levels of investment. Demographic changes have also affected the labor supply. Israel's Arabs and ultra-Orthodox Jews, who now account for nearly a third of the population, participate in the labor force in much lower rates than secular Jews, and on average have lower levels of education and skills.

Related Content

Breaking news
July 17, 2018
Iran files suit against U.S. sanctions at World Court