Despite economic reforms and restructuring over the past three years, Israeli citizens and business sector, especially investors, still have only limited economic freedom, compared with leading Western countries.
Canada’s Fraser Institute’s Economic Freedom of the World” is based on weighted indicators: the size of government; access to sound money, legal structure and security of property rights; freedom to exchange with foreigners; and regulation of credit, labor and business.
In the Fraser Institute’s Economic Freedom Ratings for 2003, Israel is ranked 50th, at the lower end of the upper half of the rankings. Hong Kong topped the rankings, followed by Singapore. The US, New Zealand and Switzerland tied for third place. Russia tied for 115th place with Rwanda and Togo; Venezuela and the Democratic Republic of the Congo (Kinshasa) tie for 124 place, and Myanmar closed the list in 127th place.
Meanwhile, “The Economist” today published emerging markets data indicating that Israel’s GDP grew by an annualized 4.8% in the second quarter, well above expectations. However, industrial output stagnated, rising 0.5% of the preceding 12-month period, the lowest among emerging markets included in the table, except for Taiwan, Turkey, the Philippines, and Hong Kong, whose change in industrial output ranged from 0.1% to minus 1.1% for the same period.
Published by Globes [online], Israel business news - www.globes.co.il - on September 11, 2005