A financial crisis in Israel may not be as big as feared, but the country faces a number of long-lasting issues and is likely to remain in a deep financial depression for the foreseeable future, according to a report published Monday.
The report from the Israeli think tank, the Israel Center for Economic Policy Research (ICERP), is the first comprehensive study of Israel’s economic situation in the 21st century and comes amid rising tensions with the Palestinians, the report said.
It said that Israel is facing a protracted financial crisis that is likely not to end anytime soon.
The institute’s report comes as Prime Minister Benjamin Netanyahu and Defense Minister Avigdor Liberman have warned the public that the country will face a “fiscal crisis” unless it takes bold measures to address the mounting economic problems and that the financial sector must be reformed to help prevent such an outcome.
It found that the economy is expected to shrink by about 0.5 percent this year, from 0.7 percent in 2015.
The biggest threat to the country’s economic outlook is the prolonged and severe recession in the private sector that will be felt by almost all households.
The report said that as many as half of Israeli households may lose more than half of their income over the next four years.
It also said that the government has not fully implemented its economic reforms, including a restructuring of the banking sector, which is the largest sector of the economy.
The government has committed to spending about $100 billion on its economy, but that plan is likely a modest and temporary solution to a problem that has worsened the past decade, the institute said.
The most important impediment to long-run economic recovery, the study found, is the inability of the private financial sector to provide sufficient liquidity to meet the financial needs of households.
The financial crisis was first noticed in the first half of 2017, when the financial industry suffered a significant decline in its ability to service its clients’ debts and the value of their savings.
The crisis has continued since, with the number of borrowers that the banks are able to lend has fallen from around 70 percent to less than 40 percent.
In some cases, the banks have been unable to issue new loans at all.
In response, the government and the banking industry have stepped up their efforts to shore up the financial system, with new initiatives like the creation of new savings banks and the creation and distribution of credit-card and other payment instruments to help increase consumer confidence.
The country is also trying to create a new financial system that will allow more financial institutions to provide credit to consumers and companies and to help address the challenges caused by the economic crisis, the Icerp report said, adding that the banking and credit sector should be restructured to address these issues.
Netanyahu and Liberman, both of whom have taken a hard line against the Palestinians’ repeated incursions into Israeli territory, have said they plan to take further steps to limit the number and reach of Palestinians in the country.
The Israel Center report comes on the heels of a recent report from a different Israeli think-tank that suggested that Israel may be facing a crisis similar to that of the 1930s.
In that period, the country was gripped by a major financial crisis, with banks and credit institutions facing severe losses.
That report by the Institute for National Security Studies (INSS) found that a number more than 1,500 financial institutions failed and that some 20,000 people lost their jobs as a result.
While the report found that most of the institutions that were unable to provide a sufficient liquidity during the financial crisis had been able to recover, there were a number that were not so fortunate.
According to the INSS report, the financial institutions that collapsed were:The Institute for Strategic and International Studies (IPSIS), which includes several academic institutions, including the Israeli Foreign Ministry, the Jerusalem University of Technology, and the Technion-Israel Institute of Technology; the Bank of Israel; and the Central Bank of Iran.IPSIS concluded that the failure of the financial services sector is due to a combination of factors including the increasing economic inequality, the absence of banking supervision, and an inability to reform the banking system.
In the past two years, IPSIS has been tracking the financial systems of several European countries and in 2015, it also examined the performance of some other European countries.
The IPSIS report also suggested that the economic slowdown has caused a number other problems in the economy, including increasing unemployment, a significant drop in the number working, and lower wages and prices.
The Icerrp report also examined a number policy measures that the Israeli government has taken in recent years to address its financial woes, including increased funding for the education system, a restructuring and creation of a new economic and financial institution, the creation in October of a National Bank of Finance, and new taxation policies.
In its report, which was conducted by the Iver Institute for Economic Research, the Israeli Center also noted that the Israel Pension Fund (IPSF),