Israel Economic Activity June 2020


Israel: Composite State of the Economy Index stabilizes in June

August 3, 2020

The Bank of Israel’s Composite State of the Economy Index inched up 0.03% month-on-month in seasonally-adjusted terms in June (May: -0.62% mom). June's result marked the best reading since January, and was driven by stronger imports in June, and a rebound in retail and services activity in May, amid the easing of lockdown restrictions. The index is calculated using the latest available data and hence uses a combination of figures from recent months to provide a comprehensive picture of the economy’s performance.

On an annual basis, economic activity fell at a sharper rate of 1.3% in June (May: -1.0% yoy).

Looking ahead, economic activity could have contracted month-on-month in July due to fresh restrictions to tame rising Covid-19 infections. Looking further ahead, the economy should gradually recover, although this is likely contingent on the virus being brought under control.

FocusEconomics analysts estimate the economy shrinking 5.0% in 2020, which is down 1.0 percentage point from last month’s forecast, before growing 4.6% in 2021.

Author:, Economist

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Israel Economic Activity Chart

Israel State of Economy June 20 20 0

Note: Month-on-month and year-on-year variations in %.
Source: Bank of Israel (BoI) and FocusEconomics calculations.

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