Prime Minister Benjamin Netanyahu said on Wednesday that Israel is being transformed into a regional "economic power" but needs to continue cutting taxes, and red tape, to boost its economy. "We are working to accelerate the economy and to turn Israel into a regional economic power and global technological power," Netanyahu told a news conference summing up his first year in office.
The government had made more than 1,500 decisions over the past 12 months, he said, but did not elaborate. As finance minister a decade ago, Netanyahu was the architect of sweeping free market and structural economic reforms. He said further reforms were needed in developing the transportation network, mainly roads and rail links, and reducing bureaucracy to free up land for construction.
"Under my leadership, Israel's economy exited the economic crisis but to complete the process, we need to free it (the economy) from the shackles of bureaucracy," Netanyahu said. Israel's economy experienced a brief recession during the global economic slowdown but growth resumed in the second quarter of 2009 and gross domestic product grew 0.7 percent for the year as a whole. The Bank of Israel forecasts the economy will expand 3.5 percent in 2010.
Netanyahu said Israel was working hard to become a full member of the Organisation for Economic Co-operation and Development (OECD) before the summer. "It is very significant," he said. On fiscal policies, he said Israel must maintain responsible spending and further reduce taxes. Israel in 2009 recorded a budget deficit of 5.15 percent of gross domestic product, below a 6 percent target. The target for 2010 is 5.5 percent but analysts expect a far lower rate.
Comments
Comments are closed.