Israel's Economy Grew 8.1% Last Year, Well Above All Forecasts

Israel's economy grew by 8.1 percent last year, the Central Bureau of Statistics said on Wednesday, well above the Bank of Israel's forecast of 6.5 percent and a clear rebound after a contraction of 2.2 percent in 2020.

According to the data, the fourth fiscal quarter of 2021 saw GDP growth of 16.6 percent, bringing the annual average to 8.1 percent, the highest since 2000, when Israel's growth rate stood at 8.4 percent.

Finance Minister Avigdor Lieberman was quick to take credit for the numbers, touting the government's policy of keeping Israel's economy as open as possible during the pandemic.

"The policy I promoted of 'living with the coronavirus' without lockdowns, without unpaid vacations, and by adopting a revolutionary [state] budget, has allowed us to break records and exceed all forecasts — which led the State of Israel to the number one growth spot among Western nations,” Lieberman tweeted.

Mathias Cormann, head of the Organization for Economic Cooperation and Development (OECD), praised Israel's handling of the Covid pandemic in comments to government ministers on Sunday.