Clal Insurance CEO Yoram Nave Expresses Optimism on Israeli Economy Despite Currency Fluctuations

Yoram Nave, CEO of Clal Insurance and Finance, spoke at the National Economic Conference organized by Calcalist, Bank Leumi, and Clal, sharing his optimistic outlook on Israel's economy despite recent challenges. Nave emphasized that his positive perspective stems from a belief in Israel's resilience and innovation, highlighting the country's leadership in desalination and the strong "DNA" of its people. He stressed the importance of turning difficulties into opportunities and honoring the sacrifices made by previous generations.

Nave presented data showing Israel's real economic growth at 4% for the current year, significantly higher than Germany and France, which are at 0.5%-1%. He noted Israel's per capita GDP nearing $70,000, surpassing Germany, and praised the country's favorable debt-to-GDP ratio, second only to Germany among developed nations. He also highlighted Israel's robust pension system, appropriate retirement age, and positive demographic growth rate of 1.5%, contrasting with Europe's stagnation and reliance on immigration.

Addressing concerns about the strengthening shekel, Nave dismissed claims that institutional investors were primarily responsible, attributing it instead to Israel's strong export surplus. He downplayed immediate negative impacts on the high-tech sector, noting that long-term policy cannot be based on short-term currency fluctuations and that wage cost increases due to the dollar can be managed.

Regarding investments, Nave underscored the need for increased infrastructure funding in Israel, pointing out that institutional investors benefit from tax advantages and should support national growth projects. He expressed willingness to invest in long-term infrastructure projects like toll roads, especially given the banking sector's recent challenges during the war.

On credit market competition, particularly the acquisition of MAX, Nave credited Clal with stimulating competition since 2022. He observed a strategic shift among competitors focusing on aviation loyalty clubs and non-bank elements, which enhances customer value and raises service standards. He warned that companies failing to offer sufficient value risk losing customers.