“Despite political chaos, Israel did well.”
That is how the British weekly The Economist sums up its ranking of Israel as tied with Spain at #4 among 34 OECD countries’ economic performance in 2022.
The rankings were based on GDP growth, annual inflation, inflation breadth, share prices, and government debt.
Although inflation in Israel rose slightly in the past year, the country’s 5.3% inflation level is about half that of most Western economies, The Economist noted.
Israel’s Finance Ministry estimates that Israel’s economy grew at a rate of 6.3% in 2022.
Calling Israel’s economic health one of the “pleasant surprises” discovered in the year-end analysis, The Economist found that Germany, “despite political stability,” underperformed and ranked in 30th place.
The top three economies on the list: Greece, Portugal and Ireland. Latvia and Estonia took the two bottom slots, while the United States ranked 20th.
Part of the reason for this year’s unexpected rankings may be that Israel, unlike Germany, Latvia and other European countries, does not rely on Russian gas and oil.