This paper first takes a historical perspective, studying the implications of the oil boom of the 2000s on industry structure and economy-wide productivity. It then examines progress with the ongoing transition thus far both in the real sector and in the labor market, bearing in mind the short...

This 2017 Article IV Consultation highlights the sound economic growth enjoyed by Israel, estimated at 4 percent in 2016 and supported by strong domestic demand and an export rebound. Unemployment declined to 4.4 percent in the fourth quarter of 2016, and wage increases have picked up....

Israel's economy is growing well with inflation remaining low and the housing market cooling. Growth of about 3 1\2 percent in 2017 helped bring unemployment below four percent in early 2018, supporting robust wage rises averaging 3u percent. Yet, partly owing to the appreciation of the shekel,...

This Selected Issues paper analyzes the macro-fiscal implications of an increase in infrastructure spending, considering Israel's dual economy character. The efficiency of investment is key to ensuring growth benefits are achieved and to containing increases in the public debt ratio. Selecting...

The economic impact of the COVID-19 pandemic is unprecedented. Israel's economic activity recorded a historic contraction, and the outlook remains challenging, with possible long-term scarring. Uncertainty is high, mainly driven by the evolution of the pandemic, the prospects for widespread...

The Israeli economy has weathered the COVID-19 crisis exceptionally well, but risks are high. With substantial fiscal and monetary support, real GDP growth reached 8.1 percent in 2021, driven by consumption and high-tech exports. The rapid vaccination campaign boosted confidence. The outlook is...