Israel's economy 'strong' and 'on track': PM

Jerusalem, Feb 14 Israel's economy is "strong" and "on a good track", Israeli Prime Minister Naftali Bennett has told visiting Secretary-General of the Organization for Economic Cooperation and Development (OECD) Mathias Cormann.

While the Covid-19 pandemic has taken a toll on the Israeli economy, the country still recorded "an extraordinary growth of almost 7 per cent", Bennett said at the beginning of a special cabinet meeting, which was attended by Cormann.

The country is still recovering from the fifth wave of the pandemic, which was led by the ultra-infectious Omicron variant, but "the economy is on a good track", Xinhua news agency quoted Bennett as saying.

He attributed the country's high growth rates to the government's choice to keep the economy open during the fourth and fifth Covid-19 waves while combating the virus with mass vaccination campaigns and the social distancing protocol.

"Our high-growth 'open Israel' policy has allowed us to raise soldiers' salaries, look after the elderly and ease pressures for working families by lowering taxes," he said.

He also pointed out that the country's hi-tech sector was the "first and foremost" growth engine of the economy.

Meanwhile, the Abraham Accords, a set of agreements signed in 2020 to normalise ties between Israel and several Arab countries, have had a significant impact on the Israeli economy and served as another engine for the country's economy, he said.

Another important engine for growth is the integration of populations with historically low employment rates into the workforce, the prime minister added.

Bennett's government, which took office in June last year, has promoted plans to integrate ultra-Orthodox Jewish men and Arab women into the workforce.

Referring to the challenges of the Israeli economy, Bennett said the country needs to reform the stagnant sectors of its economy and promote competition.

Israel's market does not allow for enough domestic competition and has to be opened up to more players, he said.