Economic indicators for Israel showed another successful year in 2017 as, for the first time ever, Israel’s GDP per capita has surpassed that of major industrialized countries such as Britain, Japan and France.
http://en.mida.org.il/2018/01/15/israel-successful-powerhouse-collapsing-middle-east/
Israel stands out among the nations that won their independence after the Second World War. Despite facing more challenges than virtually any other country, Israel has transformed from a poor and fragile socialist backwater to a first world Start-Up nation of cutting-edge technologies and knowledge during seven brief decades, while fighting for its existence.
The failures of the Arab boycott and later the Boycott Divestment Sanction (BDS) campaign movement to destroy Israel’s economy are no less spectacular than the Muslim Arab failures to defeat Israel in the military battlefields. Israel’s economy is far stronger today than when BDS was launched in 2005.
The Economist publishes an annual global report with numerous data on the countries of the world. In its newly released report, Israel’s GDP per capita has, for the first time ever, surpassed $40,000. According to the Economist’s data, Israel’s GDP per capita grew from $38,127 in 2016 to $44,019 in 2017.
Israel’s economy expanded by 4.4 % during 2017, the highest growth rate among advanced economies. By contrast, the GDP per capita of France was almost $41,000 and nearly $40,000 for Japan.
Private consumer spending rose 3.0% in 2017, 1.1% per capita. Per capita spending on semi-durable goods (clothing etc.) grew 4.7%. Per capita spending on current consumption (housing, food, services, etc.) was up 2.2%. The account deficit in the government sector totaled NIS 8 billion in 2017, making up 1.1% of the GDP, down from NIS 15.6 billion in 2016.
The contrast between first world Israel and the surrounding third world Arab world is larger today than ever before. Israel’s GDP per capita is almost 20 times the GDP per capita of impoverished Egypt and five times larger than semi-developed Lebanon.
Like any human project, Israel is a never-ending work in progress and much work remains to integrate Haredi Jews and Israeli Arabs into Israel’s knowledge economy.
Properly addressing Israel’s high costs of living requires more economic and legislative reforms and breaking up inefficient oligopolies that keep the prices artificially high. However, by any standard, the reborn Jewish state is a remarkable success story that overcame tremendous odds and obstacles.
According to Professor Jonathan Adelman, author of the book The Rise of Israel – a history of a revolutionary state, Israel’s current success was far from certain and required two Zionist revolutions.
The first Zionist revolution was Socialist democratic and lasted roughly from the first modern Aliyah in 1882 to the defeat of the Israeli Labor party in the 1977 national election.