According to Dun & Bradstreet, the Israeli economy grew by 7% during 2021. Only the likes of China and India bettered that.

Does this teach us anything about January onwards?

Well, we know that the government is finally providing some direction, as the planners can finally work according to a targets set in an official budget. And we know that Israeli exports will continue to be boosted by the hightech sector. In fact, for the first time in the country’s history, the service sector (a.k.a. hightech) is more prominent than the value of goods sold overseas.

If we look at the stats, there are 3 positive trends that are likely to continue into next year.

1. Unemployment is down sharply, and there remain key bottlenecks in many parts of the labour market. For example, it is suggested that there are around 15,000 positions open in the hightech sector.
2. 2021 was another record year for M&As in Israel. “The number of deals that closed this year rose to 238, the highest total in the past decade and almost double the number of deals in 2020.” Israel remain s a hot place to invest in.
3. And in a year of yet more lockdowns etc, 2021 saw record new vehicle sales in Israel. Purchase tax earned by the government on new cars in the first 11 months of the year rose 20% from 2020. And there is more to be bought.

Will Omicron halt this progress? Who can assume what will or will not happen on the geopolitical front? Meanwhile, as things stand, the Israeli economy is well set for 2022. Happy new Year to all!