Secretary General Mathias Cormann cited Jewish state's strong high-tech sector, resilience despite regional uncertainty
(April 2, 2025 / JNS) OECD Secretary-General Mathias Cormann during a meeting in Jerusalem on Tuesday emphasized the resilience of the Israeli economy and the vitality of its high-tech sector.
He stated that the OECD expects Israel’s economic growth in the coming year to surpass both the global average and the performance of other OECD member states.
The comments were made during a discussion with Israeli Prime Minister Benjamin Netanyahu at the Prime Minister’s Office, where the two leaders exchanged views on current global economic conditions and their implications for Israel. The conversation focused on how advanced economies are navigating uncertainty and how Israel can sustain momentum amid ongoing regional and international challenges.
While the tone of the meeting was optimistic, recent OECD publications offer a more cautious forecast. In its December 2024 report, the organization downgraded Israel’s projected GDP growth for 2025 to 2.4%, a significant reduction from its previous estimate of 4.6%. The revision was attributed to elevated defense spending and a slowdown in consumer activity due to geopolitical tensions. A follow-up interim report in March 2025 also cited persistent inflation and recommended structural economic reforms to ensure long-term stability.
Senior Israeli officials attending the meeting included National Security Council Director Tzachi Hanegbi, National Economic Council Chairman professor Avi Simhon and Israeli Ambassador to the OECD Shai Cohen.
Cormann’s visit is part of an ongoing dialogue between Israel and the OECD. During an earlier trip in December 2023, he reaffirmed the organization’s confidence in Israel’s economic fundamentals despite security-related pressures. Israel, which became a member of the OECD in 2010, continues to collaborate with the organization on innovation strategies, fiscal policy and regulatory best practices.
PHOTO: Israeli Prime Minister Benjamin Netanyahu shakes hands with OECD Secretary-General Mathias Cormann during a meeting in Jerusalem on April 1, 2025 Use according to Section 27 A