Israel's debt-to-gross domestic product ratio dropped by 1.8%, some 20 billion shekels ($5.3 billion), from 63.9% to 62.1% in 2016, the Finance Ministry said Sunday. This drop marks the seventh consecutive year in which the debt-to-GDP ratio has fallen, marking a significant achievement for Israel's economy. The debt-to-GDP ratio represents the ratio between a country's government debt and its total economic output for that year. A low debt-to-GDP ratio indicates economic stability, as it means the country's economic activities are sufficient to pay back debts without incurring further debt. According to outgoing Finance Ministry Accountant General Michal Abadi-Boiangiu, debt-to-GDP ratios have dropped by 9%, or some NIS 100 billion ($26 billion), from 71.1% to 62.1%, since 2010. The Finance Ministry said the main factors contributing to the drop were a nominal growth rate, low budget deficit, and various market factors, such as the negative Consumer Price Index rates and the shekel's solid exchange rates opposite the dollar and euro. Abadi-Boiangiu said the data "proves how robust Israel's economy is." Finance Minister Moshe Kahlon said the data marks "an achievement for the Israeli economy, the Israeli people, and especially for future generations."
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שיתוף כתבה
Israel's debt-to-GDP ratio drops for 7th year running
Ratio between government debt and Israel's total economic output drops by 20 billion shekels ($5.3 billion), from 63.9% to 62.1% in 2016 • Finance Minister Moshe Kahlon: An achievement for the Israeli economy, the Israeli people, and future generations.