the public debt ratio of GDP has jumped in the past year from 60% to 73.1%

There was a significant increase in the corona 2020 in the government debt of Israel and in the public debt, which includes the debts of local authorities. Taking out large-scale loans for government spending to fight the virus and aid the economy, caused for the first time in 11 years a significant increase in debt and this increase is expected to continue in 2021. However, it must be said honestly. A debt ratio of 73% of the GDP is a very impressive rate. We are very far from a real economic crisis. Even if it grows to 80% this year, we are very far from a real economic crisis.
Data published by the Accountant General in the Ministry of Finance, Yahli Rotenberg, shows that the public debt ratio of GDP has jumped in the past year from a relatively low rate of 60% in 2019 to 73.1%. The government debt ratio rose from the indicated low rate in 2019 relative to many countries in the world, 58.5%, to a rate of 71.6%. However, Israel is still in an excellent position relative to economic powers, led by Japan, the United States, the United Kingdom, France, and the average of all the eurozone countries in the European Union.
According to estimates, the debt of the Israeli government is expected to approach 80% in 2021 and 2022, having fallen around this high rate since the beginning of the century. It should be noted that Bash
According to the Accountant General, the debt-to-GDP ratio of Israel has risen by about 13% in the past year as a result of the significant increase in government activity and the deficit in order to deal with the corona crisis. This increase comes after a decade in which this rate gradually decreased by a cumulative 11% and reached a level of about 60% in 2019.
"This increase is lower than expected, both in light of the economy's resilience as reflected in GDP contraction data and as a result of the influence of market factors on debt data. In the period after the economy recovered from the crisis. "In 1991, at the time of the signing of the Maastricht Treaty, the debt ratio that was a condition for joining the European Union was 60% and below. Israel has fallen below this rate for the first time since 2017, but now, as mentioned, debts have skyrocketed due to the severe economic crisis in the corona year.
The Accountant General today published the first estimate of the public and government debt ratio of GDP for 2020. The debt ratio of GDP is considered worldwide as a key figure in the financial strength of countries, including the State of Israel, and in determining its credit rating.
According to the debt-to-GDP ratio published today, it is estimated that Israel's credit rating is not expected to fall soon, despite the large budget deficit, the failure to approve state budgets for 2020 and 2021 and political instability in Israel, which will hold Knesset elections for the fourth time in two months. According to the estimate, the public debt-to-GDP ratio, which includes local government debt, is expected to be 73.1%. The government debt ratio from GDP is expected to stand at 71.6%.
In 2020, due to dealing with the corona crisis, there was an increase of NIS 78.8 billion in government expenditure compared to 2019, along with a decrease of NIS 29.4 billion in total government revenue compared to 2019, which led to a sharp increase in government funding and an increase of approx. 13% in relation to debt to GDP in relation to 2019.
This increase is lower than expected, both as a result of the effects of market factors on debt - mainly the appreciation of the shekel over the past year against the dollar and the euro, inflation and interest rates - and as a result of the relatively low impact on GDP relative to forecasts. The final estimate of the debt-to-GDP ratio as well as a broad analysis of government debt will be published in the annual report of the Debt Unit of the Accountant General's Division.
In an international comparison, Israel is in a good place: Japan has a huge public debt of 266.2%. It is followed by Italy with 161.8%, the 20 most developed countries in the world with 135%, the USA 131,2%, the world average economies with debts of 125.5%, Spain 123%, France 118.7%, Canada 114.6% and the United Kingdom with 108% of GDP debts. Brazil, the eurozone, Slovenia and Germany are also ranked after Israel.
Chile is in a better position with 32.8% of GDP, Denmark with 34.5%, the Czech Republic 39.1%, Norway 40%, New Zealand 48%, South Korea 48.4% and Switzerland with 48.7% of GDP. Israel, Poland, Slovakia and Mexico are also ahead of Israel.
Israel's public debt increased by 13.1% in 2020, much less than Japan with an increase of 28.2%, Spain 27.5%, Italy with an increase of 27%, Canada 26%, the United Kingdom 22.6% and the US with a 22.5% increase in debt from GDP. The lowest growth was 4.9% in Chile, 5.1% in Denmark, 6.5% in Korea and 6.6% in Switzerland, while in Norway alone debt decreased by 1.3%.