Israel recorded its highest economic growth in 20 years in 2021, placing it as the second-best economic performer in the Organization for Economic Cooperation and Development.
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Data published by the Central Bureau of Statistics on Wednesday showed that Israel's gross domestic product grew by 8.1% in 2021, defeating the Bank of Israel's projections of 7.5%.
The average OECD-member growth last year reached 5.3%. Ireland's economy, which grew by 15.2% last year, topped the OECD's list.
According to CBS data, the improvement in Israel's GDP was especially notable given that the Israeli economy shrunk by 2.2% in 2020, due to the COVID-19 pandemic.
Other data by the Central Bureau of Statistics showed that the Israeli population added 1.7% in 2021. GDP per capita added 6.3% after falling 3.9% in 2020.
GDP per capita rose by an average of 5% in OECD countries in 2021.
Financial daily Globes added that 2021 saw an increase of 18.7% in the imports of goods and services, which dipped 9.5% in 2020.
Israel led the OECD in increased private consumption, which rose by 11.7% in 2021, after falling 9.2% in 2020. The OECD averaged a 5.6% increase in this rubric.
OECD chief Mathias Cormann, who visited Israel this week, lauded the Jewish state's economy as "remarkable" and "inspirational."
This was Cormann's first visit to Israel as secretary-general of the 38-member OECD. He met Bank of Israel Governor Prof. Amir Yaron and joined Sunday's cabinet meeting, led by Prime Minister Naftali Bennett.
"Since Israel joined the OECD in 2010, our partnership has gone from strength to strength," he told the ministers, adding that 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," he continued.
"With GDP now surpassing its pre-crisis level in the second quarter of 2021, which was a very good outcome, indeed. And 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," Cormann said.
Bennett noted that Israel is "recovering from the latest COVID wave remarkably well with rapid growth," adding that his government is determined to "keep Israel's economy open while diligently fighting the virus."
Bennett went on to acknowledge that Israeli still faces "a fair share of challenges." Areas for improvement include the "courage" to reform stagnated areas of the economy and increase domestic competition.
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