Closing the Gaps / We're on Our Way to the Top

Amid one of the world's worst economic crises, Israel's debt-to-GDP ratio increased by only 3% - a tiny increase given that many countries doubled their ratios over the course of only one year.

This is another indicator of how well Israel's economy sailed through the global crisis.

The increase for Israel is much smaller than had been predicted, and than those registered by a large portion of the world's nations. It is the smallest amount of damage that could be hoped for in such a difficult year.

Despite this, Israel's debt-to-GDP ratio is still 78% - much higher than the 60% maximum set for European nations in the 1992 Maastricht Treaty, a goal for all well-managed nations.

However, we don't seem to be far off.

Moreover, if up until a year ago Israel was considered to be lagging behind the properly run nations in terms of debt-to-GDP ratio, the gap has narrowed considerably over the last year. Not because we improved, but because the rest of the world did much worse. Now Israel is in a good position, internationally speaking, and is on its way to becoming one of the best-ranked countries in the world.

True, we shouldn't be complementing ourselves on this accomplishment just yet - we are still 18% over the goal - but it's nice to know that we're not as bad as we thought.