The success of the Israeli economy is well documented. The GDP of the Holy Land has more than doubled since the beginning of the millennium. And for much of that time, Binyamin Netanyahu has either been Minister of Finance or the Prime Minister.

For at least a year, I have been warning that this achievement is going to become a dream of the past, unless politicians wake up. However, with current coalition politics determined by a majority of one vote, proactive government financial initiatives have been sorely lacking.

This week, we learnt that:

• Growth for the last quarter was a meager 0.8%
• Exports have slipped over 12%
• Consumer spending shot up 4%, worrying in the current financial climate.

On top of this gloom, it was revealed that leading domestic companies  such as Check Point and Teva have benefitted from billions of shekels in tax rebates. All legal, but the announcement comes at a time when the Finance Ministry is threatening that the public will have to put up with more cutbacks in key social ministries.

The only clear visual response from Netanyahu so far is that he is demanding a budget based on a 24 month, and not a 12 month, cycle. He faces opposition from the Minister of Finance and the Bank of Israel. However, there is no clear structure to suggest what the move could achieve, but this is what the Prime Minister has set is eyes on.

Are there any bright spots? Well, the economy of the start up nation is beginning to reach the Arab sector. And The Calcalist newspaper was still able to identity 50 leading Israel start ups to watch in 2016.  But more than that……..?

What next? Who knows? Even the proposed in flow of cash from new offshore gas reserves has slowed down.

And where is Netanyahu? Telling off his generals in public, trying to create new political coalitions, or arguing with American presidents. That is no way to run a largish and successful economy.