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Israel The improvement in employment performance and labour utilisation has continued, albeit at a slower pace. The gap in per capita GDP with respect to the upper half of OECD countries did not decline in the last decade due to weak productivity growth. Inequalities have edged down since 2007, thanks to higher employment rates among Israeli-Arabs and the Haredim, but poverty remains widespread among these disadvantaged groups. Greenhouse gas emissions have declined, but population exposure to air pollution is increasing as air quality is well below the OECD average. Product market competition has progressed with increased openness to parallel imports and cuts in customs duties, further reduction of entry barriers in the banking sector and the launch of an electricity market reform. The access to earned income tax credits has been widened to foster employment and lower poverty for working couples. Steps have been taken to strengthen investment, planning and monitoring of public transport infrastructure. Enhancing skills of and employment opportunities for disadvantaged groups, better transport infrastructure and further product market reforms and boosting productivity are crucial for making growth stronger and more inclusive. Growth performance, inequality and environment indicators: Israel A. Growth Average annual growth rates (%) GDP per capita Labour utilisation of which: Labour force participation rate Employment rate1 Employment coefficient2 Labour productivity of which: Capital deepening Total factor productivity Dependency ratio
2002-08 2.3 0.9 0.5 0.9 -0.5 1.4 0.0 1.4 0.0
2012-18 1.7 0.5 0.1 0.5 -0.1 1.2 0.2 0.9 0.0
GHG emissions per capita4 (tonnes of CO2 equivalent) GHG emissions per unit of GDP4 (kg of CO2 equivalent per USD) Share in global GHG emissions4 (%) * OECD simple average (weighted average for emissions data)
Gap to the upper half of OECD countries5 Per cent 0
-5 -10 -15 -20
B. Inequality and environment
Gini coefficient3 Share of national disposable income held by the poorest 20%
C. The gap in productivity has remained stable
Level
Annual variation (percentage points)
-25
2017 34.4 (31.7)*
2013-17 -0.4 (0)*
-30
6.2 (7.6)*
0.2 (0)*
2016 9.4 (10.9)* 0.3 (0.3)* 0.2
Average of levels 2010-16 9.9 (11.3)* 0.3 (0.3)* 0.2
-35 -40 -45
GDP per capita
GDP per hour worked
Source: Panel A: OECD, Economic Outlook Database; Panel B: OECD, Income Distribution and National Accounts Databases; United Nations Framework Convention on Climate Change (UNFCCC) Database and International Energy Agency (IEA), Energy Database; Panel C: OECD, National Accounts and Productivity Databases. StatLink 2 https://doi.org/10.1787/888933955047 The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.