The Israeli economy has endured a difficult couple of years. Exports, which account for about 40% of gross domestic product (GDP), have been hit by weak global growth and an appreciation of the shekel. These trends have also impacted inflation, which is currently flat at 0%, well below the Bank of Israel's target range of between 1% and 3%. Moreover, economic growth for 2014 is expected to be a low 2.3%. This situation contrasts starkly with the kind of output experienced in the country between 2007 and 2012, when annualised GDP growth ranged between 3.4% and 6.9%, despite taking a big hit in 2009 as a result of the global financial crisis.
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