Tag Archive for Bank of Israel

Bank of Israel: Ultra-Orthodox impedes Israel’s economic growth

Although there has been an increase in ultra-Orthodox students entering academic institutions, an ultra-Orthodox man that has completed 19 years of yeshiva schooling is as prepared for the Israeli job market as a man who has completed only 10 years in the traditional public school system.

By Adir Yanko


Bank of Israel warns ultra-Orthodox education deficiencies will impact the economy’s ability to grow.

In a special report published Sunday the Bank of Israel looked at advancing the standard of living by increasing Israel’s productivity and determined that ultra-Orthodox men are under educated.

Rabbinical School Jerusalem – Photo: Roylindman at English Wikipedia.

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Worldwide debt owed to Israel soars to record $158.3 billion

The $158.3 billion owed Israel will be added to the state’s coffer’s foreign currency reserves now at over $273 billion which could help Israel contend with potential local and/or global financial developments.
• Central Bureau of Statistics also report foreign investment in Israel also up, reaching $20.5 billion.

By Zeev Klein


Israel is owed a record $158.3 billion in debts from countries around the world, according to figures published by the Bank of Israel and Central Bureau of Statistics on Monday.

This amount will be added to the BOI’s foreign currency reserves, which as of early 2019 stood at $115 billion, such that the bank’s “financial depth” will now stand at over $273 billion. Continue Reading »

Bank of Israel reports quality of life in Israel has risen dramatically


It’s a good year: The rise of 4.4% per capita GDP along with negative inflation over the past 3 years is demonstrated by a national buying spree with record car purchases, real estate deals and vacations abroad for Israelis.

By Zeev Klein


The past three years have seen Israel’s per capita GDP rise by a total 4.4%, along with negative inflation of 0.8% – which together mean a dramatic increase in the quality of life in Israel, figures published by the Bank of Israel show.

According to the bank data, the past three years have seen a record number of close to 1 million new car purchases and the purchase of a record number of real estate investment properties and new homes, as well as record numbers of vacations abroad, with some 4 million Israelis jetting off to foreign destinations annually. Continue Reading »

With strong economic growth, Israel’s economy surged since mid-2016


Israel’s economy surges with a growth of 4% since the final months of 2016, even after a Bank of Israel forecast of a mere 2.8% growth.

By Reuters


Israel’s economy shot up in the final three months of 2016 and looks set to have grown annually by 4 percent, easily outstripping the central bank’s expectations.

It came on the back of robust exports, but also increased consumer spending.

Bank of Israel, in Jerusalem – Photo: Wikimedia Commons/Ester Inbar

On an annualized basis, gross domestic product soared 6.2 percent in the fourth quarter, the Central Bureau of Statistics said on Thursday, as it also revised up the annualized third-quarter 2016 growth estimate to 4.2 percent from 3.6 percent. Continue Reading »

Israel Reaches Historic Low: Unemployment Rate Drops to 4.9%

Looking Good: Israel’s Central Bureau of Statistics reports number of employed Israelis has reached 3.64 million, for an all-time high of 60.9%.
• Bank of Israel leaves interest rate unchanged at 0.1%, acknowledging economy is “growing at moderate rate” with Consumer Price Index up 0.6%.

By Zeev Klein


Unemployment in Israel has fallen to an all-time low and the number of employed Israelis has reached an all-time high, the Central Bureau of Statistics said Monday.

An Israeli employment office – Photo: Yehoshua Yosef

According to the bureau’s data, the April jobless rate was just 4.9%, below the psychological threshold of 5%. Continue Reading »

Israel’s New 50 Shekel Bill Unveiled

Bank of Israel’s new 50 shekel banknote presented ahead of its entry to circulation, features the likeness of Hebrew poet Shaul Tchernichovsky.

By Ari Yashar


The Bank of Israel on Wednesday released the first samples to the Israeli market of its new 50 shekel (just under $15) banknote that is posed to enter circulation.

New 50 shekel note

Front side of New 50 shekel note – Courtesy of the Bank of Israel

Training was held in Jerusalem to prepare businesses to recognize and accept the bill and to reduce confusion as the bill enters common usage. Specifications were provided so that vending machines and other devices will be calibrated in advance to accept the note. Continue Reading »

IMF Predicts Israel’s Economic Growth at 3.5% for 2015


The International Monetary Fund forecast at 3.5% is more optimistic than Bank of Israel’s, which predicts the economy will grow 3% for 2015, but Bank of Israel predicts a lower unemployment rate.

IMF forecast a 1.6% inflation rate in 2014 & even less than 2% for 2015.

By Zeev Klein


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Banks told to prepare for new reporting to U.S. tax authorities on U.S.- Israelis

New policy brings Israel in line with most countries like Switzerland, that have succumbed to U.S.pressure, forcing many Americans to have already withdrawn their money.

By Sivan Aizescu


The Bank of Israel Sunday advised Israeli banks to begin gearing up to provide information about their U.S. clients to U.S. tax authorities, as provided in the U.S. Foreign Tax Compliance Act.

The headquarters of Israel's central bank stands in Jerusalem, Aug. 19, 2013.

The headquarters of Israel’s central bank stands in Jerusalem – Photo: Bloomberg

The statement was issued by the central bank in an effort to ensure that Israeli banking institutions will be ready to comply with FATCA when it goes into effect, in July.

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Bank of Israel chief warns ultra-Orthodox & Arab sectors could drag economy backward


Dr. Karnit Flug, the Bank of Israel Governor, believes a tax increase may be required to meet needs created by growing demographic trends in Arab and haredi sectors.

United Torah Judaism MK calls Flug’s comments “incitement.”

By Hezi Sternlicht, Zeev Klein, Yehuda Shlezinger


Current demographic trends could cause Israel’s economy to regress in terms of employment rates, Bank of Israel Governor Dr. Karnit Flug warned Monday.

Bank of Israel Governor Dr. Karnit Flug – Photo: Lior Mizrahi

Flug, speaking at a Central Bureau of Statistics seminar, said that “the makeup of the population is expected to change, with greater weight comprised by the Arab and especially the haredi sectors.” Continue Reading »

New Israeli banknotes raise Ashkenazi-Sephardi friction

The Bank of Israel presents a new set of bills amid accusations of cultural discrimination, that feature the likenesses of only famous Ashkenazi poets.


The cabinet authorized on Sunday the issuance of newly designed paper money for NIS 50 and NIS 200 notes.

A stack of shekel bills.

A stack of shekel bills. – Photo: Moti Kimche

The new bills are to enter circulation at the end of 2013. Their designs feature the likenesses of famous Hebrew poets. Criticism has been aired at the selection of the poets, who are all Ashkenazi Jews.

According to the plan that Bank of Israel Governor Stanley Fischer presented to the cabinet, Shaul Tchernichovsky is to feature on the new NIS 50 note, which will be green. Continue Reading »