The main reasons are unsuitable human capital, as shown by the PIAAC tests examining the cognitive skills of the adult population in Israel—such as problem solving skills in a digital environment—the problem of excessive and inefficient bureaucracy, and the fact that the economy is not sufficiently open to international competition in various aspects, such as the attitude toward competitive supply from abroad or relatively high non-tariff barriers.
The question of the implications of growth led by consumption over the long term has been discussed by various international entities in recent years, and the main conclusions from their studies are similar to the analysis we have conducted. Such growth tends to be weaker, and it also generally leads to lower future growth.