Bank of Israel: Natural Gas Canceled Out Negative Economic Effects of Protective Edge


natural-gasBy David Daoud

Israel’s domestic production of natural gas countered the economic losses from the Jewish state’s Operation Protective Edge’s last summer, according to the Bank of Israel’s 2014 annual report.

According to the report, published last week, the production of natural gas from the Tamar field contributed 0.3 points to Israel’s GDP growth in 2014, in addition to the field’s 0.8 point contribution in 2013. The production thus neutralized the negative economic effects of the summer’s war in Gaza, which was estimated to have set the country’s GDP back by 0.3 points.

The report also noted that Israel’s 2014 surplus amounted to $9 billion, approximately 3% of the country’s GDP. This was an increase over recent years, with the surplus in 2013 being $6.9 billion, and $2.1 billion in 2012.

According to the report, these improvements over earlier years were a “direct result of the start of gas production from the Tamar field, which reduced the need for fuel imports, and also as a result of improvements in the services area.”

The Bank of Israel also noted that there was a reduction in domestic demand for credit.

The report finally noted that the economy’s reliance on domestically produced natural gas was a positive structural change in the Israeli economy, contributing to, “very high growth rates when averaged over the long-term.”


{ Israel}


  1. A Gov’t ought to greater than the sum of it’s parts.

    On the Economic Front :

    a)Freeing up lands from the ILA for massive housing construction
    b)Breaking up the cartels and monopolies
    c)apportioning the revenue from the offshore oilfields for the greater good

    On the Security Front:

    On the the ‘Draft’ negotiations:

    Everyone will be happier if the Draft is shortened in a gradual plan.

    Ariel Sharon proposed to Ben Gurion in 1959
    to significantly shorten of conscription !!

    Lapid ym”sh also recommended to cut the Draft from 3 to 2.5 years.

    Possible Plan:
    Mid-2016:Draft will be cut to 2.5 years.
    Mid-2018: Draft will be cut to 2 years(equal to the women)
    Mid-2020: Draft will be cut 17 months (equal to Hesder)

  2. The onus is/will be now on the religious to embed this Coalition deep into the national soul long after it’s term is finally completed.

    Nothing great in the world has been accomplished without passion.”
    – Georg Wilhelm Friedrich Hegel

    For one,the charedim ought to help the incoming Finance minister is ,even though the job might be above his capability.

    Gafne as probable Finance Comittee chairman in particular.