OECD projection: Israel’s GDP to drop 6% in 2020

The OECD is encouraging the Israeli government to support ailing businesses, improve education, boost competition and help Israelis find jobs amid the financial crisis created by the pandemic.

“The global coronavirus crisis hit just as Israel’s economy was performing well. In the 10 years since joining the OECD, Israel has halved its unemployment rate, raised living standards and reduced public debt,” says OECD Chief Economist Laurence Boone in a statement. “Israel needs to keep up its efforts to protect people and firms, revive growth and avoid the crisis aggravating key challenges of high inequalities and productivity disparities between high-tech and traditional sectors.”

The international group’s statement says it projects only a gradual recovery of [Israel’s] GDP growth to 2.9% in 2021, after a drop of 6% in 2020. Unemployment is set to remain above pre-crisis levels at the end of 2021.