Israeli Economy Must Adapt to Constant Uncertainty Instead of Waiting for Stability
The Israeli economy faces a critical need to abandon the habit of waiting for stability before planning and investing. Historically, after crises such as wars, interest rate hikes, or supply chain disruptions, businesses and consumers have waited for conditions to normalize before resuming growth. However, in recent years, this uncertainty has become the new normal, with multiple challenges occurring simultaneously and shifting rapidly.
Consumers have adapted by becoming more cautious, comparing prices and prioritizing spending on quality or enjoyment despite overall restraint. Retailers, however, find that traditional economic models based on clear cycles of recession and growth no longer apply, as consumer behavior has become more complex and unpredictable.
Many businesses still operate with outdated tools designed for stable environments, relying on single-scenario annual plans and postponing investments until clarity returns. This approach risks falling behind competitors who embrace agility. The article argues for a new management paradigm that involves planning for multiple scenarios, increasing inventory flexibility, shortening response times, diversifying risks, investing in technology, and empowering frontline managers and employees.
The responsibility for adaptation also lies with the government, which must provide regulatory consistency, faster licensing processes, ongoing vocational training, and permanent emergency support mechanisms. These measures are essential infrastructure rather than temporary business relief. The article stresses that Israel must stop aiming to return to a pre-crisis economy and instead build resilience that allows continuous investment, employment, and growth amid ongoing disruptions.
Rami Shavit, controlling shareholder and CEO of Hamashbir, emphasizes that the economy's strength will be measured not by how quickly it returns to normal after shocks, but by its ability to thrive while they persist. The Israeli economy must learn to grow even while the storm is still raging.
