Money Shekels bills 521.
(photo credit: Courtesy)
Israel’s gross domestic product is expected to grow at an average annual rate of
2.6 percent between now and the year 2060, compared with 2% among all developed
countries, according to the Organization for Economic Cooperation and
In its report “Looking to 2060: Long-term global
growth prospects,” the OECD predicted that the American economy will expand by
an annual rate of 2.1% in the next 50 years, while India’s will grow by 5.1%,
China’s by 4.1% and Brazil’s by 2.8%.
The report predicted that Israel
will experience economic growth of 2.7% from 2011-30, slowing to 2.6% in
2030-60. Economic growth reached an average rate of 3.7% from
GDP per capita, which rose 1.5% annually from 1995-2011, is
predicted to grow at 1.3% from 2011-30 and 1.6% from 2030-60.
not feature prominently in the report, which focused on the shift in growth from
developed countries to emerging countries. But it was singled out as one of four
OECD member states that would benefit most from potential structural reforms,
along with South Korea, Italy and Belgium.
The OECD conducted a
simulation in which all its members conducted deep labor-market reforms, while
imagining that the average duration of individual active life converged toward
the standard set by Switzerland. It concluded that participation would increase
on average by 2.7 percentage points to 62% in 2060, rising most markedly in
Italy (+13%), Korea (+9%) and Israel (+8%).
On the other hand, the report
predicted that Israel would be one of six OECD countries to suffer a fall of at
least eight percentage points in private saving rates by 2060. It concluded that
demographic developments, combining the effect of changes in old-age and youth
dependency with life expectancy, should reduce the private saving rate of the
median OECD country by about five points.