“I am not a politician,” the prime minister said.
“We are not a government, and we are not in a position to take decisions.”
The government has been struggling with declining revenues and an economic slowdown that has forced the closure of many of Israel’s most popular tourist destinations.
The government’s economic plan for the coming year is expected to focus on attracting foreign investment and boosting the country’s domestic production of renewable energy.
The prime minister stressed that the government is in no hurry to start privatizing some sectors of the economy.
“We are trying to get through this year, but we need a good plan,” he said.
“The biggest threat to our economy is not a threat to the economy itself, but a threat of a collapse of the value of our currency, the Israeli currency.”
A report in Israel Hayom newspaper in March estimated that Israel has a $6.5 trillion budget deficit and said that the country could fall below its 2015-2020 target of 1.2 percent of gross domestic product.
The economy grew at a 3.7 percent rate in the first quarter of 2018, compared with an annual rate of 5.6 percent in the second quarter of 2020.
The unemployment rate has been rising for three consecutive quarters.
Inflation, meanwhile, has soared to 10.7 per cent, the highest in five years.
The rate of jobless claims rose to 10,500 in the latest quarter, nearly twice the 6,000 that were reported in the previous three months.
The report by the Institute for Fiscal Studies said that Israel’s gross domestic products (GDP) were expected to grow by 3.2 per cent this year.
In 2020, the economy was expected to be worth 6.4 per cent of gross GDP.
However, Israel’s financial system remains fragile.
In an effort to avoid a debt default on Israel’s bonds, the central bank has extended its bond-buying program.
Inflation, however, is expected rise to 9.5 per cent in 2021, nearly double the 6.5 percent inflation that is currently in place.
“A lot of our problems in the financial system are due to the fact that we have a huge debt load and are trying very hard to make sure we don’t default on that debt,” the government’s finance minister, Yair Lapid, told Israel Hayome.
“The main reason is that we are in a very difficult situation.
We are in such a delicate situation.
We are having to find ways to reduce our debt, and that is a very challenging and difficult situation to be in.”
Israel’s economy is currently the third largest in the world after the United States and China.