Jerusalem, Israel - Feb. 7, 2017 - On Sunday, Dr Karnit Flug, Governor of the Bank of Israel, presented a report on the Israeli economy, discussing its strengths and challenges at the Jerusalem Press Club.

Israel's exports and world trade, with goods and especially service exports, trends have been good. Internationally services in tech and cyber tech are in demand. Europe still leads as largest recipient of goods and services, but other international markets are growing.

Unemployment is at a record low. Wages are rising slowly,which Flug sees as strength and "warming up." Employment for Arab women is still a concern, while numbers for ultra-Orthodox men has risen slightly.

Financial reforms include separation of credit card companies from banks, enabling Israelis to shop for lowest cost options. A Credit Registry and Financial Stability Committee should monitor risks and regulators. 

Inflation has been low or negative, 1-3 % is target range the Bank of Israel is aiming to achieve. Home prices have gone up steadily since 2007. Social and civilian services need to improve. More money has to be allocated to education and infrastructure. 

Flug reports, "The Israeli Economy has a great potential, but while part of the economy utilizes its strengths and resources, inclusive growth of the economy as a whole requires a comprehensive and persistent policy. The main pillars of such a policy should address economic inequality, inefficient regulation and the need to increase both investment and human capital."