Jerusalem Post: Israel Economy is "ablaze"


Jerusalem Post - August 31, 2007

Just a few months ago Israel was stressed with the war in Lebanon. Now things are VERY different. Like always, Tel Aviv (and Israel) is a place that changes quickly and in a BIG way. The Tel Aviv economy is truly changing, both in real terms, and behind the scenes. A recent article by Amotz Asa-El from the Jerusalem Post reads: "The Israeli economy is ablaze. The very hotels, malls, restaurants, theaters, travel agencies, car dealerships and construction sites that earlier this decade stood eerily empty while terror raged in the streets are now brimming with customers, turnovers and profits." He continues: "Data released last week by the Central Bureau of Statistics indicates that GDP soared 6.6 percent during the first half of the year; since 2002, unemployment has dropped from 10.9% to 7.5%; household spending on durable goods skyrocketed 36%; inflation stood at 1.1%; interest rates sank below the US Federal Reserve's level; and the shekel's dollar value swelled 20% this decade."
Asa-El also points out that Israel's current economic situation is not indicative of the rest of the middle-east's situation. Since Israel is completely isolated from the Arab countries, economically Israel is also independent.
Renovation of old building at Shook Ha'carmel

Besides the political and security forces helping the Israeli economy, Asa-El does not mention how this new found wealth is being used. One obvious use is a huge renovation of buildings and infrastructure. Tel Aviv has passed an order that essentially forces building owners to renovate or face fines. This applies to buildings that have not been touched for decades. The new push from the municipality seem to work. It helps individual building owners and residents that the economy is "ablaze" as Asa-El describes. So timing for Tel Aviv's renovation is working out fine. Let's hope that the economic boom continues for a while, it will take more than a few months to cloth this city in a new outfit.
Friday Morning Breakfast

Another small detail that Asa-El mentioned is the unemployment rate. When people start earning more, when the economy in general "heats up", you can see it in the people. They dress better, go out more and in general feel better. This attitude change is definitely felt on the streets of Tel Aviv. Like all places that are coming out of an economic slump, the feel is attracting people. Not just from Israel, but from all over the world. This has affected the people and the businesses in Tel Aviv. For foreigners bringing new products and services, it is easier and less risky to start or expand. For locals, there are many more opportunities that have never been seen before. So, come see the new economy of Tel Aviv, and have a time of your life... 'in the city'...

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