Israel Economic Outlook
November 28, 2017Annualized GDP growth accelerated in Q3, driven by strong private consumption and investment. Household spending grew at the fastest pace in more than a year, benefiting from a tight labor market and low inflation. Robust business confidence and low interest rates pushed firms to invest heavily for a second consecutive quarter. Despite stellar headline growth in exports, growth excluding diamond shipments and startups was tepid, no doubt hit by the stronger shekel. Leading indicators from October have been reassuring; economic activity ticked up on stronger inbound tourism, while consumer confidence hit an all-time high amid nearly full employment. Although the PMI declined for a second straight month in October, stronger imports of manufacturing inputs signaled the manufacturing sector’s underlying health.
Israel Economic GrowthHousehold spending is expected to drive economic growth next year, supported by the tight labor market and high asset values. The Bank of Israel’s loose monetary policy and the government’s medium-term infrastructure plans are expected to boost fixed investment. Downside risks will continue to include the possibility of flare-ups in Israeli-Palestinian tensions, which could halt the tourism sector’s recovery. FocusEconomics panelists expect growth to reach 3.4% in 2018, which is unchanged from last month’s forecast. For 2019, our panel expects 3.2% growth.
Israel Economy Data
5 years of Israel economic forecasts for more than 30 economic indicators.
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|Bond Yield||1.97||-1.69 %||Dec 06|
|Exchange Rate||3.51||-0.37 %||Dec 06|
|Stock Market||1,318||-0.91 %||Dec 06|
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Israel Economic News
November 27, 2017
On 27 November, the Bank of Israel decided to leave the interest rate unchanged at 0.10%, citing persistently low inflationary pressures.
November 27, 2017
In October, the Bank of Israel’s (BoI) Composite State of the Economy Index rose 0.32% on a monthly basis, accelerating from September’s revised 0.28% increase (previously reported: +0.27% month-on-month).
November 16, 2017
The economy continued heating up in Q3, with GDP growth accelerating to a seasonally-adjusted annualized rate (SAAR) of 4.1%, from an upwardly revised 2.5% in Q2 (previously reported: +2.4% SAAR).
November 15, 2017
On a monthly basis, consumer prices rose 0.3% in October, accelerating from September’s 0.1% increase.
November 13, 2017
Exports rebounded in October after falling sharply a month earlier.