A Macro Perspective – 2010
Author: Eran Yashiv Policy Research

The current chapter surveys macroeconomic developments in Israel in 2010. It examines the discrepancy between Israel’s good situation, as reflected in various macroeconomic indicators, and its worrying long-term economic problems.

Current data indicate respectable growth in terms of GDP and employment, relatively low unemployment, current account surpluses, and reasonable inflation. The long-term problems include relatively low investment, lagging physical infrastructure, and numerous labor market problems, which negatively affect the quality of human capital and labor productivity in Israel.

The chapter concludes with a discussion of the considerable problems that stand in the way of attempts to modify Israel’s fiscal policy in order to resolve these problems.

This appears as a chapter in the Center’s annual publication State of the Nation Report 2010.

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