The Jerusalem PostEconomy
Israel's Economic Future at Risk as Productivity Lags Behind G7 Nations
Summarized from The Jerusalem Post by baba
Center-rightCharged tone
A Shoresh Institution report warns Israel's economic future is at risk as its productivity has fallen 15% below the G7 average in 2023, compared to being above it in 1975. Factors contributing to this decline include educational gaps, demographic shifts, and a "brain drain" of skilled workers. The report calls for urgent reforms in education, public spending, and governance to reverse the trend.
The story in 5 lines · by baba
- Israel's total factor productivity is now 15% below the G7 average, down from 9% above it in 1975.
- Output per hour worked shows Israel trailed six of seven G7 nations by 2024, compared to leading them in 1972.
- Educational gaps, demographic changes, and skilled worker emigration threaten Israel's long-term economic viability.
- Productivity outside Israel's strong hi-tech sector is significantly below the OECD average.
- The report calls for "Israel 2.0" reforms in education, spending, and governance, warning the window for change is closing.
The Jerusalem Post publishes in English. The key points are summarized above. Read The Jerusalem Post’s full report from the link at the top of the page.
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