Israeli industrial production growth in 2006 was the highest in the
world (37.1%), and the Wall Street Journal called Israel "the best
initiative economy in the world." After recording a higher GDP growth
in 2006 than the OECD countries, the Ministry of Finance reports an
annual GDP growth in the 1st quarter of 2007 of 6.3%, and an annual
export growth for the same period of 11.1%. The Israel Export
Institute reports that the industrial deficit for the first quarter
of 2007 was down by 6%.
The expected inflation rate for this year of 2-3%, is the third
lowest in the world, according to The Economist. The Bank of Israel
has lowered the interest rate to 3.5%. Standard & Poor has recently
upgraded Israel's credit rating to "positive," joining a similar
action on behalf of Moody's and Fitch in 2006.
Foreign direct investments in 2007 are expected to grow by 8.0%,
reaching $15.3 billion, as compared to $14.2 billion in 2006 (2005:
$4.8 billion; 2004: $2.1 billion). Foreign stock investments in
January attained an all-time peak of $460 million. There is also a
growing trend of Israeli investments abroad: $30 billion in 2006
(2005: $18 billion; 2004: $13 billion).
The Ministry of Finance has published an updated summary of Israel's
economic situation, showing impressive growth in many areas.