Israel Ranks Second Most Expensive Nation Globally Amidst Limited Purchasing Power
Translated & summarized from i24NEWS French by baba
Israel is the world's second most expensive country, according to economic specialist Yaëlle Ifrah, due to poor privatization and competition regulation, leading to high prices and limited consumer purchasing power. Ifrah has launched an app, Caspenou, to help Israelis manage their spending.
The story in 6 lines · by baba
- Israel is the second most expensive country globally, behind Switzerland.
- Limited purchasing power exacerbates the high cost of living for Israelis.
- Poorly managed privatizations and weak competition regulation are key causes.
- Over 40 monopolies dominate significant portions of the Israeli market.
- An app called Caspenou aims to help Israelis manage their finances.
- Consumers face uniform pricing due to a lack of competition.
Israel has been identified as the second most expensive country in the world, trailing only Switzerland, despite a significantly lower purchasing power for its citizens, according to economic specialist Yaëlle Ifrah. Speaking on the i24NEWS program Regards Croisés, Ifrah attributed this economic reality to poorly managed privatizations and inadequate regulation of competition.
The Israeli market is characterized by a substantial number of monopolies, with over 40 companies holding more than half of their respective sectors, and in some cases, up to 80% market share. Ifrah criticized the state for failing in its regulatory role and pointed to companies exploiting their dominant market positions.
Consumers are struggling to adjust to an economy that appears prosperous on paper but maintains exceptionally high prices. In response, Ifrah developed Caspenou, an application designed to help Israelis consume more effectively and avoid overpaying. However, she cautioned that price comparison alone is often insufficient due to the lack of genuine competition, which keeps prices uniform across different retailers.
"Israelis do what they can with what they have," Ifrah concluded, highlighting the challenges faced by consumers in navigating the high-cost environment.