Cuando en el 2008, cuando algunas de los gigantes financieros del mundo empezaron a tambalear y los mercados del mundo empezaron a colapsar, Israel demostro que su economia estaba muy fuerte no solo en su capacidad de expansion durante los anos florecientes sino tambien en su resilencia durante los tiempos de la crisis economica
Ahora, cuando la economia global emerge de la recesion, Israel ha ascendido rapidamente en el sector ecomico, demostrado primero en una bolsa de valores que se impuso a las bolsas occidentales en el 2009 y luego demostrando el incremento de sus exportaciones, disminuyendo el desempleo y robusteciendo la demanda del consumidor.
A strong position on the eve of the crisis
Israel was well prepared when, in 2008, the effects of the financial crisis began to ripple across world economies. From a macroeconomic perspective, Israel found itself in one of its strongest positions since its inception. The budget deficit had been largely reined in and the national debt was greatly reduced, thanks to aggressive spending cuts and increased tax revenues. Israel was a sought-after target of foreign investment and was enjoying a positive trade balance for the first time in its history.
The crisis could have spelled an end to these halcyon days, but Israel’s growth proved to be robust enough to withstand the consequences of the financial downturn of 2008.
Israel withstands the recession
Three main reasons are often cited to explain Israel’s strength in the face of such severe challenges.
The first reason is Israel's conservative banking sector. A strong regulatory system and a moderate banking tradition kept Israel’s banks away from the adventurous instruments which proved so disastrous in the US and Britain. In addition, as world investors got jittery, they were assured by Israeli banks’ strong capitalization.
Another reason was the labor market’s elasticity in coping with the new reality. Major players, including the Histadrut (Israel's largest labor federation) understood the wisdom of accepting short-term pay cuts during the early stages of the crisis, and unemployment also increased significantly, in parallel with global developments.
As the economy recuperated over the course of 2009, wages and employment quickly returned to their previous levels, even as labor markets in the US and Europe remained sluggish.
However, the strength of domestic consumption over the course of the crisis is really what stands Israel apart in its macroeconomic adjustment. As the recession hit, Israelis cut their durable goods expenditures, but largely kept their nondurable goods spending even with pre-recession levels, cutting into personal savings to "smooth out" the drop in income. This was a primary factor in maintaining a stable GDP, and allowing the Israeli economy to weather the recession successfully. As the world moved out of recession in 2009, domestic spending on both durable and nondurable goods picked up quickly, further aiding the country’s recovery.
The Israeli "economic miracle" is much more than a story of recession and recovery - it is the story of an economy that was built from scratch, survived numerous crises and severe economic deprivation, and has finally emerged as a successful, freemarket economy whose citizens enjoy a high standard of living.
With a population in 2010 of more than 7.5 million, Israel has been internationally acclaimed throughout the years, in particular for its extraordinary achievements in agriculture and agrotechnology, irrigation, solar energy, and in many hi-tech industries and start-ups. Based on intensive R&D, even in traditional industries, Israel today is not only the land of milk and honey but also the land of hi-tech, including software, communications, biotechnology, pharmaceuticals, and nanotechnology.
Free-trade agreements reached over the past three decades with the United States, the European Union and several countries in Latin America have facilitated Israel's expanding exports of goods and services - more than $80 billion in 2008 - as well as its participation in international business enterprises that contributed to the country's accelerated growth.