Uncertainty Keeps Israel Mid-Table

October 2006 | Business Environment Outlook

Israel's economy is recovering from recession and remains affected by the political uncertainty caused by a fragile coalition government and ongoing disputes with the Palestinians. Political and economic risk, combined with a very small autos manufacturing base and a relatively saturated market, leave little room for substantial growth. Consequently, Israel comes joint sixth with Kuwait in our regional ranking, rising one point, to 33 points, this quarter due to improved long-term political risk and a more competitive

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