This is a rapid rate of growth by international standards, and Israel is also enjoying an increase in investments and exports, a balance of payments surplus, a particularly high rate of foreign investments, rising productivity and an improvement in employment data. Inflation in Israel is low, levels of interest rate are similar to elsewhere and the markets demonstrate strength and stability.
In particular, the net impact of these structural changes requires a full-scale, intertemporal general equilibrium approach: shorter-run and longer-run forces may work in opposite directions, while the nature of the impact on the supply side of the economy needs to be assessed jointly with the implications for the various components of aggregate expenditure: public and private consumption, public and private investment and export and import dynamics.