Israel Economic Outlook
November 3, 2020The latest data suggests tepid activity in the third quarter. The State of the Economy Index declined in July and only recorded mild rises in August and September. Moreover, September’s reading—which is calculated in part using backward-looking data for August—likely does not fully incorporate the impact of the second nationwide lockdown in place from mid-September. Looking to the fourth quarter, while the lockdown was eased somewhat in mid-October, remaining restrictions will still be severely curtailing the services sector. In politics, disagreement between Prime Minister Netanyahu and his coalition partner Benny Gantz over the budget process has raised political uncertainty and is hampering the government’s response to the Covid-19 crisis. If a budget for the current year is not passed by 23 December, fresh elections will be triggered, which could further increase instability.
Israel Economic GrowthEconomic output will tumble this year due to the double lockdown. However, the economy should rebound next year amid the likely lifting of restrictions and strong gas exports. Downside risks include volatile regional geopolitics, political instability amid a fractured parliament, and a potential prolongation of Covid-19 restrictions. FocusEconomics analysts estimate the economy expanding 4.2% in 2021, up 0.1 percentage points from last month’s forecast, before growing 4.2% in 2022.
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|Bond Yield||0.98||-1.69 %||Jan 01|
|Exchange Rate||3.46||-0.37 %||Dec 31|
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Israel Economic News
June 15, 2021
Consumer prices rose 0.40% over the previous month in May, accelerating from the 0.30% rise logged in April.
June 13, 2021
Merchandise exports jumped 18.8% over the same month last year in May (April: +48.3% year-on-year).
May 31, 2021
At its 31 May meeting, the Bank of Israel (BoI) left the policy rate at 0.10%.
May 25, 2021
The Bank of Israel’s Composite State of the Economy Index increased 0.25% in month-on-month seasonally-adjusted terms in April, which was down from March’s 0.37% growth.
May 19, 2021
The Purchasing Managers’ Index (PMI), produced by Bank Hapoalim and the Israeli Purchasing & Logistics Managers Association (IPLMA), came in at 52.6 in April, up from March's 48.6.