The fallout of the mortgage crisis in America and the rise in commodity prices have begun to affect the Israeli economy, but to waht extent?

For the past 5 – 6 years, the stats show an economy that has grown by over 30%. No wonder the OECD wants Israel as a member. As for 2008, only last week, unemployment fell to another low of 5.9%. Time lag until it rises back up? Maybe, but all the predictions still say growth this year will round off at about 4%.

Now compare that to other countries.

Evidently, there are some underlying strengths within the Israeli financial scene that over weigh short term international economic changes. I was talking last week to a senior planner in the Ministry of Trade. Currently, the forecast for 2009 is growth around the 3.5% mark, well beyond almost all of Israel’s competitors.