According to a Wednesday report of Israel’s Central Bureau of Statistics, the country’s gross domestic product grew by 8.1% in 2021, higher than earlier 7.5% projections made by the Bank of Israel.
In the OECD, whose members average GDP growth was 5.3% compared to 2020, Israel is second only to Ireland, which enjoyed a 15.2% GDP growth in 2021. Behind them stand the UK with 7.5%, France – 7.0%, the US – 5.7%, Spain – 5.0%, Canada – 4.8%, New Zealand – 4.7%, Sweden and the Netherlands – 4.3%, Norway – 4.1%, Australia – 3.8%, Germany – 2.7%, and Japan – 1.8%.
According to CBS, the striking improvement in Israel’s GDP can be partially explained by the fact that the Israeli economy shrank by 2.2% in 2020, due to the COVID-19 pandemic.
Globes noted that in 2021 there was an increase of 18.7% in Israel’s imports of goods and services, after a 9.5% decline in 2020. Israel led the OECD in increased private consumption – by 11.7% in 2021, after a 9.2% drop in 2020. The OECD average import increase was only 5.6%.
On his visit to Israel this week, OECD secretary-general Mathias Cormann said the local economy was “remarkable” and “inspirational.” Speaking to PM Naftali Bennett’s cabinet on Sunday, Cormann said the OECD has been “inspired by Israel in particular when it comes to innovation and digital security and water governance. In recent decades Israel has done very well. As a result of ongoing structure reform, effective macroeconomic’ management. The economy in Israel has made remarkable progress. … Israel has shown great resilience in the context of the unprecedented COVID-19 shock.”
Cormann also noted that “Israel’s successful COVID-19 management has been one of the world’s most advanced and flexible, keeping Israel fully open to the fourth and fifth waves and it has been an inspiration to other countries the way has managed this.”
Israel’s Private Consumption per Capita was by far the highest in the OECD, which averaged an increase of 5.6% in 2021 over 2020. Israel had a 9.9% increase, ahead of the US – 7.4%, New Zealand – 6.5%, Italy – 6.0%, France – 4.5%, Spain – 3.9%, Norway – 3.8%, Sweden – 3.7%, Canada – 3.2%, the UK – 2.3%, Japan – 1.6%, and Germany – 0.7%.
