Analysis: Shaky global economy should push Israel to become more competitive

Israel was reminded this past week that no matter what it might do, its economic destiny is not entirely its own.

The declines in the Tel Aviv Stock Exchange followed those in global markets. Its poor showing in the second quarter was mainly the result of a dragging world economy, which has kept Israel’s shekel strong, its exports less competitive and the markets that buy them lukewarm.

Though Israel’s financial system and conservative banking regulations helped it weather the storm of the 2008- 2009 global financial crisis relatively well, there is only so much a small, open, export-dependent economy can do.


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