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Israeli economy

2016 was one of the Israeli economy’s best years with an amazing growth rate.

Israel’s economy grew 4 percent in 2016, exceeding the growth rate of other Organization for Economic Co-operation and Development (OECD) member states, which averaged 1.7 percent, the Israeli Central Bureau of Statistics said Thursday.

Israel’s gross national product stood at 2.5 percent in 2015 and 3.2 percent in 2014. The country’s business sector experienced 4.2 percent growth in 2016 compared to 2.3 percent in 2015, the Bureau said.

The newly released data also said Israel’s gross domestic product per capita has also grown. Private consumption of fixed-price goods and services increased 6.3 percent in 2016, after growing 4.3 percent in both 2015 and 2014. Overall, 2016 saw a 2 percent rise in fixed prices, which are unaffected by inflation rates, compared to 0.5 percent growth the previous year.

“It is safe to say that 2016 will be remembered as one of the Israeli economy’s best years,” Finance Minister Moshe Kahlon said Thursday.

“The actions we have taken over the past two years have proven there is no contradiction between having a free, responsible economy and helping the lower socio-economic echelons and the middle class. It used to be said that one can only do one or the other. Today we see that it is possible to do both,” he said.

In November, Fitch Ratings upgraded Israel’s Long-Term Foreign and Local-Currency Issuer Default Ratings (IDRs) to ‘A+’ from ‘A,’ great news for Israel’s economy and a testament to its stability and growth.

By: JNS.org and United with Israel Staff