Developments in the Israeli Economy and the Implications for National Security

In 2014 the Israeli economy was on a sound, if unexceptional track, despite some limited turbulence. No significant changes in government policy took place, although important questions surfaced at the end of the year about the future fiscal path in general, and about the defense budget in particular. Moreover, during Operation Protective Edge, some long term issues came to the fore. What follows is a survey of the key economic developments in 2014, with a focus on the various issues and upsets from the perspective of the economy and national security. The survey includes proposals for change in government policy.