MK Merav Cohen of the Yesh Atid party recently made a statement regarding the government’s handling of the economic challenges in Israel. She claimed that the previous government’s policies had resulted in a decrease in economic growth from 8% to 3%. However, there are several inaccuracies and misleading aspects to her statement.
Firstly, the growth figures mentioned by Cohen are not entirely accurate. In 2021, under the previous government, Israel experienced a growth rate of 8.6%. In 2022, when the current government was in office, growth amounted to 6.5%. While there was a decrease in growth, it is not as sharp as Cohen claims.
Moreover, the high growth figures were primarily a result of the recovery from the COVID-19 pandemic and the lifting of lockdown restrictions. These numbers cannot be directly attributed to the policies of any specific government.
Additionally, it is important to note that short-term government activity has limited impact on economic growth. Experts argue that it is difficult to determine the government’s role in short-term growth fluctuations.
Furthermore, the forecast for growth in 2023 was already predicted to be around 3% even before the current government came into power. Both the Ministry of Finance and the Bank of Israel published forecasts with similar growth rates.
While Cohen’s statement may create a misleading impression, economists warn that in the long term, government policies can have an impact on economic growth. Loss of trust and uncertainty can negatively affect consumption and investment.
In conclusion, MK Merav Cohen’s statement regarding the decrease in economic growth under the current government is inaccurate and misleading. The growth figures she mentioned are not entirely correct, and short-term growth fluctuations cannot be solely attributed to government policies. It is essential to consider long-term effects and the overall complexity of the economic situation.