Tikvah
Editors’ Pick

February 10, 2021

The Challenges to the Israeli Economy in the Wake of the Coronavirus

Despite vaccination, recovery won’t be easy.

As is the case elsewhere, the COVID-19 pandemic has taken a severe toll on the Jewish state’s economy, shrinking the GDP by 3.7 percent in 2020 and sending the unemployment rate up to 34.7 percent during the first lockdown. Still, the economic contraction is smaller than what the government experts had predicted last fall, vaccination is proceeding at steady rate, and the second lockdown (September-October of last year) took a less dire toll. The Jewish state is not, however, out of the clear by any measure: a third lockdown went into effect in December, and the ongoing political instability means that the country won’t have a 2021 budget until after the March election. Shlomo Even writes:

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