Benjamin Netanyahu
Photo: Gil Yohanan
Bank of Israel: Bibi's policy contributed to growth
Netanyahu receives weighty reinforcement from Bank of Israel. Bank asserts that Netanyahu's policies as finance minister, along with growth in world trade and improvement of security conditions, contributed to growth seen in last three years
Benjamin Netanyahu received weighty reinforcement Wednesday for his economic policies put forth during his term as finance minister since 2003.
The Research Department of the Bank of Israel published the findings of a study indicating Netanyahu's policy, in particular his reform policy for lowering taxes, as the key local factor that contributed to the growth process the Israeli economy has witnessed in the past three years.
The other factors indicated in the study are the growth of world trade and the improvement of the security situation. These findings were presented on day of study in memory of the 10th anniversary of former Bank of Israel Governor Michael Bruno's death.
Those in charge of the study are Dr. Karnit Flug and Dr. Michel Strawczynski of the Bank of Israel's Research Department.
In addition to the gradual reduction of income tax and corporate tax (the next reduction will be carried out in another two weeks), the research indicates improved macroeconomic policy resulting in lowered inflation, strengthened fiscal discipline, and liberalized foreign exchange policy.
In their calculation of the various factors contributing to the transition to continued growth, the researchers say that local factors represent are about a third of the influence. Increased world trade and the improved security situation – factors on which the treasury has no influence – represent the remaining two-thirds.
