OVERVIEW This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. Summary The economy withstood the global economic crisis thanks to a timely macroeconomic policy response and a solid banking sector. Although strong profits in the mining and oil sectors have supported business investment, employment growth slowed in the autumn and winter, and confidence weakened, largely reflecting temporary factors. The latest indicators suggest the economy is picking up, and the outlook is for continued moderate output growth and inflation in 2012-13. However, record low mortgage rates have pushed house prices up substantially in some cities, and boosted household indebtedness, which poses an increasing risk. Monetary policy remains appropriately accommodative given persistent global