Two months ago, the Times of Israel wrote a positive summary of the Israeli economy.

Unemployment in Israel is at around 4%, inflation is at the lower edge of the nation’s target of 1% to 3%, and the increase in gross domestic product (GDP) in 2018 was 3.3% , still higher than the average growth in 2018 for OECD nations — the world’s richest — forecast to be 2.37%……The economy has not faced a recession in the last 15 years, and GDP in dollar terms has increased by over 55% since 2010. …….GDP per capita in Israel was $40,270 in 2017, up from just $1,229 in the 1960s, and is now “firmly in line with high income nations,”……..

To ram the point home, GDP for Q119 has just been revised upwards to 5%. Egypt and Israel are contemplating joint liquid oil exports from the Sinai desert. The shekel is considered a solid performer on global currency markets. What could be wrong?

Well for a start, the government’s budget is spiraling out of control, 3.8% of GDP and seemingly rising. The cost of living is relatively high and getting higher, thus ensuring the continued extremes in wealth variations between rich and poor. Strikes in the public sector – teachers, diplomats – are looming up ahead. And the voice of the Minister of Finance is not to be heard.

And then we come to that minor nuisance of the general election on 17th September. The point is that the Prime Minister, Netanyahu, is completely engrossed in ensuring that he secures yet tenure – and thus, he assumes, multiplying his chances of avoiding trials for embezzlement etc,

Almost daily,  we hear Netanyahu’s complaints about opposition politicians. We rarely hear about new policies on social and economic matters. For example, labour productivity remains weak and thus reflects on the economy’s ability to rejuvenate itself. For all the positive stats, poverty effects around 25% of the Israeli population. Traffic jams clog the 3 major cities. The high-tech industry cannot fill thousands of places. And the food sector is so regulated and protected that prices to the consumer continue to be bloated.

The pain is there for all to see and most citizens to feel. And meanwhile, the interim government is holidaying on the beach, while plotting how to stay in power come September 17th. I ask that you keep the noise down and not disturb them so that they can enjoy their well deserved break from work.