OECD Economic Surveys.

Description

OECD's 2013 Economic Survey of Israel examines recent economic developments, prospects and policies. Special chapters cover health care and the tax and transfer system. Table of contents Basic statistics of Israel, 2012 Executive summary Assessment and recommendations Growth remains relatively strong Figure 1. Output performance has weakened but remains better than in many other economies Table 1. Macroeconomic indicators and projections Box 1. A substantial upward revision in the level of GDP Figure 2. Inflation, interest rates and currency developments Figure 3. Housing market developments Challenges in long-run productivity performance, poverty and the environment Figure 4. Core economic challenges for the longer term. Figure 5. Environmental indicatorsFigure 6. The OECD Better Life Index for Israel Balancing inflation targeting and financial stability objectives is a challenge Foreign-currency purchases have resumed Figure 7. Currency developments and foreign exchange reserves Reasonable progress in strengthening risk provisions and oversight in the financial sector Box 2. Recommendations on monetary policy and financial-market regulation Fiscal balances are set to come back on track Figure 8. Government revenues, expenditure and debt Figure 9. Deficit outcomes and targets. Figure 10. Fiscal scenarios beyond 2014If further revenue-raising measures are needed, what form should they take? Spending discipline need to be reinforced Box 3. Recommendations on fiscal policy Social policy, education and health care still face difficulties In education a tougher line on enforcing the core curriculum is planned Figure 11. Poverty, labour-market and education indicators Employment and social policies are advancing only slowly, as spending remains small-scale Some pension settings need reform A good health-care system, but not without challenges. Figure 12. Healthcare indicatorsBox 4. Recommendations on social policy, education and health care There has been reasonable progress in improving the business environment Maintaining an attractive profile of business taxation and effective business support remains crucial Figure 13. Indicators of business policy Good progress in strengthening competition Box 5. Recommendations on the business environment Environmental concerns need greater attention Energy and transport policies could be greener Issues in water and waste management, and biodiversity. Box 6. Recommendations on environmental policiesBibliography Annex. Progress with structural reforms Chapter 1. How to improve taxes and transfers Notable features of the system Figure 1.1. Tax revenue and social spending indicators Key challenges Background: The recent history of tax and transfer measures Table 1.1. Key tax and benefit measures since the tent-protests of 2011 Indirect tax Figure 1.2. Tax on goods and services Table 1.2. Key features of Israeli indirect tax, 2011 A good system of VAT Figure 1.3. Value added tax.