Israel Economic Outlook
January 8, 2019The fourth quarter seems to have followed in the footsteps of the rapid domestic-demand-driven economic growth observed in the third quarter. Consumer confidence in November reached its highest level since the survey began on a broad-based improvement. In the same month, the Composite State of the Economy Index edged higher thanks to a solid domestic economy, as the external sector dragged on growth somewhat. The index thus trended markedly above the average reading of the third quarter in October–November. Moreover, November PMI data highlighted improved business conditions in the manufacturing sector thanks to resilient domestic-demand dynamics, which offset a drop in foreign demand. Although exports contracted in the same month, the trade deficit narrowed owing to a moderation of import growth. In the political arena, Prime Minister Benjamin Netanyahu announced snap elections on 24 December, moving the scheduled general elections forward by six months as a police investigation accusing Netanyahu of corruption reached its climax.
Israel Economic GrowthThe economy is expected to be buttressed by domestic forces: Private consumption should benefit from a lower tax burden and still-favorable financial conditions, while fixed investment should reap the fruits of new gas- and oil-related projects. Regional tensions remain a key downside risk, however, clouding the outlook. FocusEconomics Consensus Forecast panelists forecast economic growth to moderate to 3.2% in 2019, which is unchanged from last month’s forecast. In 2020, our panel sees the economy expanding 3.3%.
Israel Economy Data
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|Bond Yield||2.25||-1.69 %||Jan 30|
|Exchange Rate||3.67||-0.37 %||Jan 30|
|Stock Market||1,403||-0.91 %||Jan 30|
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Israel Economic News
April 16, 2019
Exports expanded 5.2% in March in USD terms, up from February’s 2.4% growth, while imports were up 4.9%, contrasting a 7.4% contraction in February.
April 15, 2019
Consumer prices rose 0.5% in March over the prior month, up from February’s 0.1% rise.
April 10, 2019
Confidence among Israeli household improved from minus 10 in February to minus 8 in March.
April 8, 2019
At its 8 April meeting, the Monetary Committee of the Bank of Israel (BoI) kept the interest rate unchanged at 0.25%, as had been widely expected by market analysts.
March 27, 2019
On 9 April Israelis head to the polls to choose the 120 members of the Knesset, the country’s unicameral parliament.