Israeli economists warn the country could be on the verge of a recession, following surprisingly slow GDP growth in the first quarter of 2016. Israel’s economy expanded by a paltry 0.8% in the first quarter of 2016. Given the country’s 2.0% annual population growth rate, that amounts to a decline in per capita GDP. This quarter’s anemic growth follows a robust 3.1% growth in GDP in the fourth quarter of 2015. The rapid decline has some experts concerned Israel could be heading for a serious economic downturn. While consumer spending was up a whopping 4% - fueled in part by record low interest rates - Israeli businesses saw negative growth, contracting by 0.4%. Exports were especially hard hit, suffering from a global decline in trade. Excluding the diamond and hi-tech industries, Israeli exports fell by 12.9%, while imports rose by 7.5%. Recessions, defined by two consecutive quarters of negative growth, tend to occur every 8 to 10 years. While Israel’s economy took a hit during the global financial crisis of 2008, the downturn did not lead to a full-blown recession in Israel. (INN) [Comment]

 In a sharp turnaround, PM Benjamin Netanyahu sought on Wed. 18 May 2016 to bring the ultranationalist Yisrael Beiteinu party into his governing coalition by offering to name its leader, Avigdor Lieberman, defense minister, according to politicians across Israel’s political map. Liberman confirmed later in the day that he had accepted Netanyahu's offer to bring the party's six seats into the coalition, expanding it from 61 to 67 seats, in exchange for the defense portfolio and support for certain legislation backed by the party. Lieberman, 57, foreign minister in two previous governments led by Netanyahu, is known as a blunt-talking, polarizing figure. He demands the death penalty for Palestinians convicted of acts of terrorism, and has called in the past for the toppling of Hamas, the Islamic terrorist group that controls Gaza. Netanyahu has been seeking to stabilize and strengthen his governing coalition, which is dominated by right-wing and religious parties, because it currently holds a majority of only one in the 120-seat Knesset. The addition of Yisrael Beiteinu would give Netanyahu’s coalition 67 seats.

The Israeli government official, who spoke on the condition of anonymity, asserted that Lieberman, who immigrated to Israel from the Soviet Union in the 1970s and lives in a Judea & Samaria settlement, had voiced support for a Palestinian state and that a right-wing government would have more credibility with the Israeli public to take difficult steps for peace without fear of compromising Israel’s security. But Lieberman has been scathing in his criticism of President Mahmoud Abbas of the Palestinian Authority. He has called for the ouster of Abbas and denounced his campaign for upgraded Palestinian status at the UN as "diplomatic terrorism.” (J.Post/NY Times) Pray for wise and strengthening changes in Israel’s government.

EgyptAir flight MS804 from Paris to Cairo disappeared from radar early Thurs. morning 19 May 2016. Egyptian officials believe that a mid-air explosion caused the plane to crash into the Mediterranean. Egypt's Sherif Ismail said all possible causes of the explosion were being examined - including terrorism. Airline officials stated that the plane's emergency beacon had been detected some two hours after the last radar contact. The crew of a ship not far from the plane's last known location claimed to have seen a huge fireball in the sky. In the middle of the flight, radio contact with the plane was lost, and the flight disappeared from radar. Officials said they were not ruling out terrorism as a possible cause of the crash. Last October an Airbus A321 jetliner operated by the Russian Metrojet company crashed in the Sinai Peninsula, likely the result of a bomb smuggled onboard by ISIS terrorists. An EgyptAir mechanic with ties to ISIS is suspected of sneaking the bomb onto the Metrojet plane. (Arutz-7) [Comment]

Southern Gaza is in a total electricity blackout, and even the Palestinian Authority news outlet Maan admits it's not Israel's fault. Though reports of electricity shortages in Gaza are generally accompanied by unjustified finger-pointing at Israel for the situation, the 16 May 2016, report by Maan barely mentioned Israel. Instead, it implied that the responsibility for the new situation lies squarely on the shoulders of Egypt. Gaza’s electricity company announced that the two lines that fed electricity from Egypt to southern Gaza, at a capacity of 20-24 megawatts, have now been completely disconnected by Egypt. The first one was disabled two weeks ago, leading to rationing of "six hours on, 12 hours off" for all districts in Gaza. (Arutz-7) Sadly, it must be noted that a major reason the Hamas controlled Gaza Strip is so poor it can’t pay its electricity bills, or provide needed assistance to the population it has impoverished, is because it uses massive percentages of foreign aid monies to further its chief – if not only – goal; the destruction of the Jewish state. With money donated for humanitarian aid, the Hamas terrorist group buys weapons and builds sophisticated terrorist attack tunnels to use against Jewish communities; from innocent babies, to IDF soldiers, mothers, fathers, and the elderly. In return, Gaza’s self-imposed misery knows no bounds. "Gaza will shave her head in mourning” Jer 47:5 [Comment]

Former USA President Bill Clinton came to his wife's defense on Friday, 13 May 2016 when the focus of a campaign event for the Democratic candidate Hillary Clinton shifted to Israel. Amid a speech discussing his wife's positions on the major issues at an event in New Jersey, a member of the audience interjected "What about Gaza?" and criticized her statement that neutrality is not an option when it comes to Israel. "I killed myself to give the Palestinians a state," the former President responded. "I had a deal they turned down that would have given them all of Gaza." When the audience member continued to press the issue, Clinton elaborated on the complicated nature of the Israeli-Palestinian Conflict. "Hamas is really smart. When they decide to rocket Israel, they insinuate themselves in the hospitals, in the schools, in the highly populous areas. Hamas has said they try to put the Israelis in a position of either not defending themselves or killing innocents. They're good at it," he elaborated. [Comment]

Israel’s most impressive accomplishment is the reunification of Jerusalem, President Reuven Rivlin said on Sunday,15 May 2016 in a meeting with members of an Israel Bonds delegation. Rivlin, a seventh-generation Jerusalemite, who seldom misses an opportunity to tell his guests that he is the son of the son of the son of a native Jerusalemite going back seven generations and that his grandchildren are ninth-generation Jerusalemites, is a staunch advocate for Israel’s capital. When interviewed, his customary greeting and farewell is: "Shalom, from Jerusalem.” On Sunday, the Gregorian calendar date of the 68th anniversary of Israel’s Declaration of Independence, Rivlin hosted a 140-member Israel Bonds delegation – the largest ever to come to Israel – which was visiting the country as part of the organization’s 65th anniversary celebrations. (Jerusalem Post)
[Comment]

Israel this week took another important step toward becoming a member of the North Atlantic Treaty Alliance. The organization announced that it will allow Israel to open an office at NATO headquarters in Brussels to push forward a process that could ultimately lead to full-fledged membership for Israel. NATO’s 28 members include the United States, Canada, EU member states and other European countries. The alliance obligates all member states to aid a fellow member if it comes under attack. "I welcome NATO’s announcement, it is an important step that helps Israel’s security,” said PM Netanyahu. "It is further testament to Israel’s standing and the desire of many to cooperate with us in the field of security.” Israeli officials noted that NATO’s announcement came on the heels of a concerted diplomatic effort, with the help of the United States, Canada, Germany and other European countries. Along with Israel, Jordan and Bahrain also received a green light to open offices at NATO headquarters. The situation in the Middle East and spread of jihadi terrorism highlight the importance of the decision. (Algemeiner) [Comment]