According to the renowned British journal "The Economist," Israel has been placed fourth among 34 OECD countries for its outstanding economic performance in 2022.
The preceding year was beset with economic challenges on multiple fronts: the high inflation caused by supply chain interruptions, the war in Ukraine, the energy crisis that resulted from it, and the ensuing stock market instability. Despite this, the Israeli economy has defied expectations and delivered a great performance, according to the British weekly magazine.
When assessing 34 OECD countries, the publication utilized five macroeconomic metrics: GDP growth, inflation rate, inflation breadth, government debt, and stock market performance. As reported by Isranomics last week, Israel's debt-to-GDP ratio declined from 68% to 60% this year, while GDP expanded by 5.8%. In terms of inflation, while it has risen to 5.3% in the last year, it is still less than half the rate seen in most Western economies.
The world's largest economies underperformed. For instance, the United States was placed 20th with its 0.2% GDP, while Germany was ranked 30th. Estonia was placed last out of the 34 OECD countries.
Greece was voted number one as having the best performing economy in 2022 by "The Economist." The nation that had to deal with the economic crisis previous to the pandemic has turned its fortunes around in the last year, cutting its debt-to-GDP ratio by an astounding 16%. Ireland and Portugal finished in second and third place, respectively, ahead of Israel and Spain, who tied for fourth place.
According to "The Economist," countries, such as Israel and Spain, whose energy supply is not reliant on Russia, have managed to keep inflation low. While Israel benefited from its Leviathan gas reserve, Spain acquired gas from Algeria in addition to its solar energy source throughout the reviewed twelve months. As a result, the country saw comparatively low inflation of 5.7%. Because of its reliance on Russian energy, Germany's economy posted a record annual inflation rate of 10.4%, while Latvia witnessed a stunning 20% spike in the consumer price index during the same time period.
This article originally appeared here and is reposted with permission.
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