After three years of Israel’s multi-front war in the Middle East, it would be no surprise if this month’s Knesset elections were taking place against the backdrop of an economy in dire straits.
While Israel’s economy has bounced back in part due to robust employment and wage growth, its resilience is primarily an “export-driven story that reflects strong global technology demand, particularly in areas where Israel – and multinational firms operating from Israel – is globally competitive, such as cybersecurity and artificial intelligence, ” said Keren Uziyel, a senior analyst for the Middle East and Africa at the Economist Intelligence Unit (EIU).
Israel has for years ranked among the most expensive countries in the Organisation for Economic Co-operation and Development (OECD), a dynamic economists attribute to the country’s limited trade relations with its neighbours and cumbersome regulations.
But food costs are rising and debt is growing.