Israel Economic Outlook
October 6, 2020Economic conditions appeared muted in Q3 following a record contraction in Q2. The State of the Economy Index declined in July and August, likely held back by the reimposition of some restrictions following rising new cases. In addition, merchandise exports were down sharply in the same period on still-tepid demand abroad. Moreover, the government reimposed a full-scale nationwide lockdown on 18 September as Covid-19 cases continued to surge, which likely hit the services sector particularly hard and pummeled the economy towards the end of the quarter. Non-essential businesses and schools have been closed, with citizens ordered to stay within 500 meters of their homes. However, people are still allowed to travel to work if their business is considered essential, which includes the banking, energy and construction sectors, and some manufacturing sites.
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 see the economy shrinking 5.6% in 2020, before growing 4.1% in 2021, which is down 0.6 percentage points from last month’s forecast.
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|Bond Yield||0.98||-1.69 %||Jan 01|
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Israel Economic News
October 15, 2020
Consumer prices fell 0.10% from the previous month in September, following the flat result recorded in August.
September 29, 2020
The Bank of Israel’s Composite State of the Economy Index dropped 0.06% month-on-month in seasonally-adjusted terms in August, following July’s 0.02% decline, amid elevated new Covid-19 cases and the reimposition of some restrictions on activity.
September 15, 2020
Consumer prices were unchanged over the previous month in August, coming in below July's 0.20% increase.
September 15, 2020
The Purchasing Managers’ Index (PMI), produced by Bank Hapoalim and the Israeli Purchasing & Logistics Managers Association (IPLMA), increased from 49.8 in July to 53.1 in August, moving above the neutral 50-mark and signaling improving operating conditions for the first time since January.
September 13, 2020
Merchandise exports shrank 8.3% over the same month last year in August, on the heels of July’s 13.7% plunge, amid still-tepid demand abroad.