The Israeli economy will grow at a slower pace during 2020 and 2021 than had been the case in recent years, the OECD said in its latest forecast on how economies of member countries will perform. According to the forecast, Israel’s economy will grow at an average of 2.9% annually over the next two years.
The latest forecast shows a poorer performance for the Israeli economy than the previous forecast, which showed growth of 3.3% in 2020 and 2021. Over the past decade, the annual average growth in the economy has been 3.8%, while over the past 25 years it has been 3.7%.
With that, the 2.9% predicted growth rate is higher than the average expected in all OECD countries. The 35 economies of OECD member nations are expected to grow an average of just 1.7% in the coming two years. The U.S. economy is expected to grow by about 2% during the period, while European economies will grow just an average of 1%.
One reason for the better than average expected performance of the Israeli economy is the fact that Israel’s population is expected to grow more than the average OECD member country population. Israeli mothers have on average 3.1 children, compared to 1.7 children per family in all OECD countries, and 1.6 children in European countries.