Israel's economic future at risk as productivity falls behind G7 nations, report warns
Israel went from outperforming G7 economies to lagging behind them, as a new Shoresh report warns that education gaps, demographic shifts, and brain drain threaten its economic future.
Israel's economic standing has deteriorated over the past decades, falling behind G7 nations in productivity, according to a report by the Shoresh Institution for Socioeconomic Research. In 2023, Israel's total factor productivity was 15% below the G7 average, a significant decline from 9% above in 1975. The report attributes this change to weak education, rapid demographic shifts, and the departure of skilled workers.
The upcoming Israeli election will determine the country's future, with policymakers needing to address educational and budgetary priorities to ensure long-term economic viability. Israel's success in the tech sector, while impressive, does not compensate for weaker performance in other industries.
Written by urgent.news from Jerusalem Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
