The Israeli economy continued to withstand the global economic crisis in 2011, which turned to be an important year for the Israeli economy also due to key socio-economic issues receiving more attention
The following article summarizes key events and developments over the last year in the Ministry of Finance and the Israeli economy, with links to further information in articles posted over the last year by the International Affairs Department in the ministry.
Main Economic Indicators
The Israeli economy continued to withstand the global economic crisis in 2011, while maintaining growth: Israel's GDP per-capita is forecasted to grow by 3% in 2011. Also, Israel managed to decrease its unemployment to an historic low level, standing at only 5.5% in the 2nd quarter of 2011, and 5.6% in the 3rd quarter of 2011.
Inflation in the last 12 months (Nov. 2011 compared to Nov. 2010) stands at 2.6%, within the target bandwidth of the Bank of Israel (1%-3%). Average monthly Consumer Price Index (where 2010=100) grew from 101.4 in Nov. 2010 to 104.1 in Oct. 2011. The Bank of Israel Interest rate grew gradually from 2% in Jan. 2011 to 3.25% in June. In between June to September, Bank of Israel interest rate was stagnant, and then was gradually decreased to 2.75% in Dec. 2011.
Both imports and exports knew a recovery in the 1st half of 2011, with a decline in the 3rd quarter. Exports of goods and services are forecasted to grow by 3.8% in 2011, and imports of goods and services are forecasted to grow by 9.2% in 2011.
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