2023-12-26 11:43:00
Psagot’s chief strategist, Uri Greenfeld, is making waves with his prediction that interest rates will not plummet as many expect. In an interview with Bizportal, Greenfeld discussed the deficit, the budget, and the war, presenting his opinion that the interest rate will not fall quickly and will not fall much. He believes that the interest rate will be around 4% at the end of 2024.
When questioned about potential sources of budget increase and the prospect of raising taxes, Greenfeld emphasized the need to cultivate growth engines for the economy, rather than immediately resorting to tax hikes. He also stressed the importance of encouraging economic activity to generate more taxes, rather than raising tax rates.
Greenfeld also shared his thoughts on increasing revenue, stating that integrating populations currently outside the labor force into the workforce can lead to increased GDP and tax revenues. Additionally, he emphasized the importance of maintaining high-tech as an engine of Israeli growth and finding ways to allow it to continue without creating additional pressures on the economy.
Regarding the defense budget, Greenfeld addressed concerns about a potential increase in the deficit beyond 7-8%. He expressed confidence that, even in such a scenario, Israel would not face significant economic challenges.
As of now, Greenfeld’s predictions and recommendations could have a significant impact on the country’s economic policies in the coming years. For the full interview with Greenfeld, you can visit Bizportal’s website.
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