December 2016 – It is nearly time for those end of year celebrations; Christmas and Chanukah fall on the same day this year. So lots of candles to light.

The economy of the Holy Land also stands brightly. I have not hidden my complaints about how certain population sectors have been ignored during recent booms nor how restrictive practices remain in place, such as in the ports. That said, just have a look at this impressive list of achievements as we prepare for a new year.

1. Israel’s economy is growing at a little over 3% per annum. This is a real increase, factoring in the rise in population. Further, it is close on double the average rate for the OECD.
2. Unemployment is at a 30 year low, around 4.5% of the work force. Again, this is a stat that other countries can only be jealous of.
3. Despite a rise in the cost of commodities and the internal growth mentioned above, Israel has managed to ensure that inflation has been kept within reasonable and acceptable limits.
4. Looking ahead, a strategy is emerging to lower taxes, particularly in the corporate sphere. This will encourage direct foreign investment and thus feed into further growth.
5. The Palestinians are also set to benefit from this good news. An additional 22,000 daily work permits will be issued for them to cross over from the West Bank and from Gaza. (It is just a shame that they refuse to reciprocate and formally allow in Israeli exports, which would enhance the peace process).
6. Jordan too is expected to benefit. It will receive cheap gas from new reserves developed by Israel. Jerusalem also intends to double its supply of water to the Hashemite Kingdom in the next few years.
7. Large conglomerates are continuing to invest in Israel. I mentioned last week that Microsoft is about to invest US$0.25 billion in a new campus, just north of Tel Aviv. GE, BMW, Tata are just some of the other world leaders that have been in the news during the past month, when it comes to extending their activities in Israel.

All in all, 2016 has turned out well for the Israeli economy. I just hope more people can be part of that triumph. Meanwhile, there is cause for optimism regarding 2017.