Israel Economic Outlook
October 29, 2019The economy appeared to gain steam in the third quarter. In July and August, growth in the State of the Economy index—a proxy for economic activity—averaged notably higher than in Q2. Moreover, the labor market should have remained tight as the unemployment rate tracked below 4.0% in July and August, while average wage growth markedly outpaced inflation in July, boding well for private consumption. This comes after a meek Q2: A third GDP estimate revised growth down to a mere 0.6% SAAR. However, this low figure was distorted by a sharp fall in vehicle sales, after consumers had front-loaded purchases in Q1 ahead of new environmental taxes, and underlying momentum was broadly stable. On the political front, the country remains without a new government following inconclusive elections in September. However, economic momentum should remain robust regardless.
Israel Economic GrowthEconomic growth should be brisk next year, underpinned by loose monetary policy, strong population growth and the start of production at the Leviathan gas field, which should stimulate exports. Elevated global trade tensions, a large fiscal shortfall and volatile regional geopolitics pose downside risks. FocusEconomics analysts expect growth of 3.2% in 2020, which is unchanged from last month’s forecast, and 3.3% in 2021.
Israel Economy Data
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|Bond Yield||1.10||-1.69 %||Sep 04|
|Exchange Rate||3.53||-0.37 %||Sep 04|
|Stock Market||1,479||-0.91 %||Sep 04|
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Israel Economic News
November 14, 2019
Confidence among Israeli households worsened from minus 9 in September to minus 10 in October.
November 13, 2019
Merchandise exports fell 21.8% year-on-year in October in USD terms, contrasting September’s 11.5% growth.
November 3, 2019
The Bank of Israel’s Composite State of the Economy Index rose 0.25% in September compared to the previous month in seasonally-adjusted terms, up from August’s revised 0.20% expansion (previously reported: +0.23% month-on-month).
October 30, 2019
Merchandise exports rose 5.7% in September in USD terms, contrasting August’s revised 6.9% fall (previously reported: -6.0% year-on-year).
October 27, 2019
Confidence among Israeli households improved from minus 10 in August to minus 9 in September.