It has emerged that the Israeli economy grew by nearly 3% in the first half of 2016. That means that all the gloom and gloom from earlier stats have been swept aside. In fact, this is one of the best performances in the whole of the OECD.

Moody’s liked the news and confirmed Israel’s A1 credit rating. And a week ago, S&P also commented favourably on Israel’s financial status. So it seems as if everything is moving along smoothly.

And now look again. The key element to this pattern of growth in 2016 so far has been a massive leap in private consumption – 9.5%. For example, new car sales are up 15% this year. However, all first year economic students learn that such a rush by individuals to their bank accounts does necessarily create long-term positive growth.

As for exports, a key part of the economic charge of recent years, the signs are worrying. The global market is reticent. The shekel remains high, especially in relation to key trading partners such as the UK. Intel and Teva, two dominant manufacturers in Israel, are undergoing planned restructuring, ensuring their exports are low comparatively.

My real concern is that what the stats tend to hide are internal structural weaknesses. For example, while politicians claim otherwise, there is no conclusive evidence that the housing market is slowing down.  The threat of a ‘bubble’ lingers on. Elsewhere, vested interest groups are ensuring that food imports remain restricted and forcing the consumer to accept bloated prices. Even government funds for start ups via the Office of the Chief Scientist have been partially reduced, arguably to pay for promises given to other ministers closer to the Prime Minister.

My own anecdotal evidence from clients in differing sectors is that there has been a pick up in recent months. However, for many it is just a partial rebound from a very difficult period stretching back at least 12 months.

My personal take on the situation is that the Israeli economy has ‘got away with it’ until now. Today, you just get the feeling that it is rudderless. As Bloomberg put it: “Israel’s economy roaring no more, even as it accelerates”. The question is will the Prime Minister care enough to support his Minister of Finance.