By Jonathan Lisand and Michael SchumacherThe Jerusalem PostThe Israeli economy is expected to grow by 0.7% this year, according to government figures.
The annualized growth rate was 2.4% last year.
The new figures were released Tuesday.
Net economic output, a measure of how much of the economy is produced by people, rose to $5.1 trillion in 2016 from $4.9 trillion in 2015.
That’s 0.3% higher than the previous year.
Net exports rose to 5.1 billion from 4.6 billion in 2015, while imports increased by 2.3 billion to $2.6 trillion from $2 trillion.
Net private consumption increased by 7.7%, while net government consumption fell by 1.2%.
The government’s central bank lowered its key interest rate from 6.25% to 6.05%.
The central bank’s next decision will be on when to raise interest rates.
In 2017, the government plans to increase its annual tax on net income from 5% to 15%.
The government’s goal is to bring in $400 billion a year.
The government plans a 3% increase in the personal income tax rate to help fund education and health services.
The tax is scheduled to rise from 5.5% to 8.75% next year.
In 2020, the plan is to increase the personal tax to 15%, but the government expects that to be a stretch.
The government expects the rate to rise to 16% next summer.
In 2021, the central bank is expected at its June meeting to lower the main interest rate to 5% and to keep it there for another year.
In 2022, the rate will be lowered to 4%.
In 2024, the budget says the government will introduce a new tax on savings accounts, but that is still months away.
The central government will also introduce a tax on credit cards, but those plans are far from official.
The Israeli Finance Ministry says it expects to have more details on tax reforms by the end of the year.