Shoresh Institution report: Israel's productivity trails G7 average
What happened
A report by the Shoresh Institution for Socioeconomic Research, written by Dan Ben-David, found that Israel's total factor productivity is 15% below the G7 average in 2023. This measure assesses how efficiently an economy combines labor and capital to produce goods and services. The report notes that Israel previously exceeded the G7 in 1972 but has since fallen behind.
From jpost.com
Why it matters
The report warns that weak education, rapid demographic change, and the departure of skilled Israelis are reinforcing issues that threaten the country’s long-term economic viability. The findings suggest that the country must address educational and budgetary priorities to maintain economic stability.
Productivity increases in the Israeli economy are currently offsetting wage growth, which impacts inflation risk.
From jpost.com
Who's involved
- Dan Ben-DavidShoresh President and member in social science faculty in Tel Aviv University