Israel Economic Outlook
May 10, 2022After accelerating in Q4, economic momentum appeared to wane somewhat in Q1, in part due to a challenging base of comparison. The Composite State of the Economy index recorded only mild growth in the period, while the manufacturing PMI averaged in contractionary territory in Q1 amid weak export demand. However, the unemployment rate continued to fall throughout the quarter, which, together with the removal of vaccine pass requirements, should have supported consumption. Moreover, visitor arrivals roared back through March in line with easing travel restrictions. In politics, pressure on the government is rising because of a recent surge in violence and the loss of its parliamentary majority in April following the defection of an MP. As a result, the risk of snap elections has risen. That said, economic growth is unlikely to be knocked notably off course.
Israel Economic GrowthGrowth should be rapid this year, sustained by recovering tourism, a booming tech scene and improving relations with Gulf neighbors. The most recent example of strengthening ties came in April with the announcement of a trade deal with the UAE covering 95% of tradable products. However, higher inflation due to the Russia-Ukraine war and social unrest at home are risks. FocusEconomics analysts see the economy expanding 5.1% in 2022, which is unchanged from last month’s forecast, before growing 3.6% in 2023.
Israel Economy Data
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|Bond Yield||0.98||-1.69 %||Jan 01|
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Israel Economic News
May 15, 2022
Consumer prices rose 0.77% in April over the previous month, picking up from the 0.58% rise logged in March.
May 15, 2022
Merchandise exports rose 14.6% year-on-year in April (March: +35.9% year-on-year).
May 1, 2022
The Bank of Israel’s Composite State of the Economy Index expanded 0.19% month-on-month in seasonally-adjusted terms in March (February: +0.10% mom).
April 15, 2022
Consumer prices rose 0.58% in March over the previous month, below the 0.68% increase logged in February.
April 14, 2022
The Bank Hapoalim/IPLMA Manufacturing Purchasing Managers’ Index (PMI) fell from 49.7 in February to 47.4 in March.