The Israeli delegation in Washington for the semiannual Joint Economic Development Group (JEDG) talks presented on Friday gave a successful presentation. Despite last summer’s second Lebanon war, Israeli economy is going from strength to strength while scrupulously complying with certain US economic conditions.
One of the delegation members joked, “The Americans might now ask for economic aid from Israel.”
While that did not happen, the delegation was able to impress its interlocutors with Israel’s macroeconomic figures, which indicate further growth, tight government spending, avoiding a deficit blowout, and falling unemployment.
In 2003, Congress approved the Bush administration’s request for $9 billion in loan guarantees, subject to certain conditions. These included restricting the growth in government spending to 1% a year, a maximum budget deficit of 3% of GDP, and pursuing economic reform. Each year, Israel makes a progress report to the US, which theoretically could cancel the loan guarantees if Israel fails to comply with the terms.
The delegation said that Israel’s growth potential was 5% a year, and that economic reforms would be implemented. Governor of the Bank of Israel Prof. Stanley Fischer is heading the delegation, accompanying by other top officials.
Published by Globes [online], Israel business news - www.globes.co.il - on March 4, 2007
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