Smotrich: Protest has not managed to damage economy

Finance Minister Bezalel Smotrich reports that the judicial reform protests have caused minimal damage to Israel’s economy.

Israel National News     Sep 4, 2023, 4:39 PM (GMT+3)

Finance Minister Bezalel Smotrich submitted today (Monday) to the finance committee a report on the expected economic and fiscal trends for the 2024 budget year. The report is required by law as part of the adjustment procedure for the 2024 budget, which was approved together with the 2023 budget.

Attached to the Finance Minister’s report is an economic analysis document carried out by the Chief Economist’s Division and the Budgets Division, which reviews growth data, revenues, expenses and deficit, inflation, interest and the employment market in an international comparison and in a comparison between the forecasts used to formulate the budget and the reality in the first half of 2023 and the latest forecast for 2024.

The report shows that the state of the Israeli economy is better than most reference countries in the world, although due to several factors, including the extension of the duration of the moderation of inflation and the high interest rate environment and the weakening of the shekel, there are changes that may affect the state’s expenditures in 2024.

The Minister of Finance concludes his letter by criticizing the leaders of the left-wing protest against the government as deliberately trying to damage the economy and notes that their impact on the economy so far is minimal: “The Israeli economy is showing relative resilience and stability in a time of global crisis, and the macro data of the Israeli economy are good and strong.”

“This tenacity sharpens sevenfold in the face of a campaign conducted in recent months by irresponsible parties who are deliberately trying to damage the economy as part of their political struggle against the right-wing government and the important amendments it seeks to pass in the Israeli justice system. Powerful forces with huge budgets and unprecedented media backing who are defaming Israel badly in the economic world with blatant lies and with false scares and doing everything to create panic and negative sentiment in the economy. So far it seems that their effect on the economy is only minimal.”

According to him, “The free market is smarter than the leaders of the campaign thought, examines numbers and international comparisons, and understands that the Israeli economy is strong, that our economic policy is sound, professional, and above all consistent and restrained (responsible and restrained budget, responsible long-term labor agreements in all sectors of the economy that provide stability and certainty) For many years, huge investments in infrastructure encourage growth and promote reforms to remove barriers, reduce regulation and bureaucracy and continue to promote a global free market policy, along with social responsibility and focused and non-populist sensitivity.”

“I appreciate and hope that these trends will continue with God’s help and will allow us to continue marching the Israeli economy towards growth and prosperity and to meet the many challenges we face on all levels,” concluded the Minister of Finance.