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More clarity needed on future defence spending, Israel's central...

Israel's central bank chief is urging the government to enact responsible fiscal policy by reining in non-defence spending to offset any further expansion in the military budget. He suggests establishing a committee to determine Israel's defence needs and formulate a multi-year budget program. The governor also highlights significant challenges facing the economy, including low labour productivity and weak basic skills. Israel's economy grew 2% in 2023, and the governor believes that implementing responsible economic policy will help achieve sustainable growth.

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