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Table of contents; Basic statistics of Israel, 2012; Executive summary; Assessment and recommendations; Growth remains relatively strong; Figure 1. Output performance has weakened but remains better than in many other economies; Table 1. Macroeconomic indicators and projections; Box 1. A substantial...

Figure 5. Environmental indicatorsFigure 6. The OECD Better Life Index for Israel; Balancing inflation targeting and financial stability objectives is a challenge; Foreign-currency purchases have resumed; Figure 7. Currency developments and foreign exchange reserves; Reasonable progress in strengthe...

Figure 10. Fiscal scenarios beyond 2014If further revenue-raising measures are needed, what form should they take?; Spending discipline need to be reinforced; Box 3. Recommendations on fiscal policy; Social policy, education and health care still face difficulties; In education a tougher line on enf...

Figure 12. Healthcare indicatorsBox 4. Recommendations on social policy, education and health care; There has been reasonable progress in improving the business environment; Maintaining an attractive profile of business taxation and effective business support remains crucial; Figure 13. Indicators o...

Box 6. Recommendations on environmental policiesBibliography; Annex. Progress with structural reforms; Chapter 1. How to improve taxes and transfers; Notable features of the system; Figure 1.1. Tax revenue and social spending indicators; Key challenges; Background: The recent history of tax and tran...

Welcome reductions in the taxation of specific consumer durables and food items