Israel Economic Outlook
June 7, 2022
Following 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 Growth
Growth 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
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Israel Facts
| Value | Change | Date | |
|---|---|---|---|
| Bond Yield | 0.98 | -1.69 % | Jan 01 |
| Exchange Rate | 3.46 | -0.37 % | Dec 31 |
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Israel Economic News
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Israel: Manufacturing PMI improves in October
November 23, 2022
The Bank Hapoalim/IPLMA Manufacturing Purchasing Managers’ Index (PMI) rose to 53.6 in October from September's 51.3.
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Israel: Bank of Israel hikes for sixth straight meeting in November
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.
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Israel: GDP growth moderates in the third quarter
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).
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Israel: Inflation rises in October
November 15, 2022
Inflation came in at 5.1% in October, which was up from September’s 4.6%.
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Israel: Manufacturing PMI rises in September
October 25, 2022
The Bank Hapoalim/IPLMA Manufacturing Purchasing Managers’ Index (PMI) rose to 51.3 in September from August's 49.5.
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