Israel Economic Outlook
June 7, 2022Following three quarters of rapid expansion, economic activity shrank in quarter-on-quarter terms during Q1, with private consumption, public spending, fixed investment and exports all weakening. Nonetheless, the economy’s underlying strengths remained intact: The labor market tightened notably, while Covid-19 restrictions were eased. The economy should return to growth in Q2: In April, the unemployment rate tumbled below its pre-pandemic level, while the Composite State of the Economy Index rose at its fastest pace in six months. Moreover, visitor arrivals were up 28% from the prior month in April, and the scrapping of all remaining travel restrictions from mid-May will be boosting tourism towards the end of the quarter. Finally, the global energy crisis is benefiting Israel’s gas sector: The government recently renewed gas exploration and hopes to soon reach a deal to supply gas to Europe.
Israel Economic GrowthGrowth should be rapid this year, sustained by recovering tourism, a booming tech sector, stronger gas output and improving relations with Gulf neighbors. The most recent example of strengthening ties came in late May, with the formal signing of a trade deal with the UAE covering 95% of tradable products. However, higher inflation and unrest in Palestine are risks. FocusEconomics analysts see the economy expanding 4.9% in 2022, which is down 0.2 percentage points from last month’s forecast, before growing 3.5% in 2023.
Israel Economy Data
5 years of Israel economic forecasts for more than 30 economic indicators.
Get a sample report showing our regional, country and commodities data and analysis.
|Bond Yield||0.98||-1.69 %||Jan 01|
|Exchange Rate||3.46||-0.37 %||Dec 31|
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
Israel Economic News
November 23, 2022
The Bank Hapoalim/IPLMA Manufacturing Purchasing Managers’ Index (PMI) rose to 53.6 in October from September's 51.3.
November 21, 2022
At its 21 November meeting, the Bank of Israel (BoI) raised the policy rate from 2.75% to 3.25%—marking the highest level since 2011 and meaning that rates have risen by 315 basis points this year. The decision to hike was once again driven by a desire to dampen broad-based price pressures, with inflation running above the Central Bank’s 1.0–3.0% target range so far this year.
November 16, 2022
Economic growth slowed in the third quarter, with GDP increasing 2.1% in seasonally-adjusted annualized terms (SAAR) (Q2: +7.3% SAAR).
November 15, 2022
Inflation came in at 5.1% in October, which was up from September’s 4.6%.
October 25, 2022
The Bank Hapoalim/IPLMA Manufacturing Purchasing Managers’ Index (PMI) rose to 51.3 in September from August's 49.5.