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The Bank of Israel published the Economic Aid Report; Finance: "Incorrect data"

The report found that aid in the first half of 2020 reached only 3.7% of GDP, compared to other countries. On the other hand, the Ministry of Finance claimed that the comparison is based on outdated data and the assistance stands at 13.9%. Bank of Israel: "We are sorry that this is the response of the Ministry of Finance, which ignores professional analysis"

• Bank of Israel
• Ministry of Finance

Dana Yarkatzi

A confrontation broke out today (Tuesday) between the Ministry of Finance and the Bank of Israel, following the financial stability report for the first half of 2020 published by the latter. According to the report, aid to the Israeli economy reached only 3.7% of GDP, compared with 11.5% in Australia, 11% in Singapore, 9.8% in the United States and 8% in Thailand.

On the other hand, the Ministry of Finance claimed that the Bank of Israel published data on an international comparison of the aid programs of the various countries, without specifying the source of the comparison and probably on the basis of out-of-date data from Goldman Sachs. According to the Ministry of Finance, the figure attributed to the State of Israel was incorrect for the previous aid package (7.1% of GDP), and certainly not true for the current package (13.9% of GDP).

The ministry's data shows that the Israeli government's assistance to its citizens stands at 13.9% of the 2019 GDP, which is becoming important in all countries of the world
.

The Ministry of Finance clarified that Israel's aid volume is higher than the average OECD aid volume. "We are convinced that working together will make it possible to avoid such mistakes in the future," it said.

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The Bank of Israel states that "The semi-annual financial stability report published by the Bank of Israel analyzes various issues within the first half of 2020. As such, it contains illustrations that reflect the period analyzed by Bank of Israel economists. "Made by the international investment house Goldman Sachs, which indicates Israel's location close to the center of comparison between the countries. We are sorry that this is the response of the Ministry of Finance, which ignores the time frame and professional analysis of the report."