According to the latest OECD report, Israel’s economy is doing well and has an incredible resiliency, but the country needs to address a number of issues including productivity, inequality and poverty if it wants to improve well-being and reduce socio-economic divides.
According to the economic survey of Israel for 2016 which was presented by OECD Secretary-General, Angel Gurría, to Prime Minister Binyamin Netanyahu during the weekly cabinet meeting on Sunday, Israel can raise living standards but it will necessitate strengthening competition throughout the country as well as the efficiency in domestic economy.
Israel ranked second in terms of the income gap between higher and lower sectors of society which is a worrying pattern, however the report gave some suggestions on how to fix the staggering trend of widening gaps. The report said that "by boosting investment in infrastructure and promoting skills, particularly among disadvantaged groups can both enhance social cohesion and raise long-term growth."
While giving the report, Mr Gurria told the cabinet that “growth rates have exceeded those in most other OECD countries for more than a decade; employment is rising; inflation is low; and the public finances are in relatively good shape; but, there is homework to do if everyone in Israeli society is to benefit from this strong growth.”
In terms of breaking down monopolies in the country the report suggested that Israel address the weaknesses of the Israel Electric Corporation which it called "dominated by a heavily indebted, publicly owned, vertically integrated company," and suggested turning the corporation into a holding company and creating a separate infrastructure operator. It made similar recommendations regarding the various telecom companies, the postal services and the gas sector.
The report is a bi-annual one which delves into the economic standing of the country. It has illustrated that Israel's economy has seen a steady increase for the past thirteen years and a stability that is exceptional. Israel's flourishing economy is one of the highest among nations in the OECD.