Israel

Israel Economic Activity May 2024

Israel: Composite State of the Economy Index rebounds in May

The Bank of Israel’s Composite State of the Economy Index expanded 0.04% in month-on-month seasonally adjusted terms in May, which contrasted April’s 0.08% decrease. The Index was positively influenced by increases in imports of consumption goods and manufacturing inputs, industrial production, services revenue, employee posts, and building starts. In contrast, declines in goods exports, credit card purchases, and retail trade negatively influenced the Index.

On an annual basis, economic activity fell at a sharper rate of 1.7% in May (April: -1.4% yoy), the worst result since November 2023.

Despite May’s slight month-on-month rebound, economic activity remains smaller than its level before the war with Hamas broke out in October 2023, and May’s expansion was less than half the average rate recorded in the year before the war.

On the outlook, EIU analysts said:

“We expect a surge in government consumption to be sustained over the course of 2024. However, this will not fully offset the impact on growth of security restrictions, the dampening of private consumption and weakening domestic and foreign investment. We do not expect the economy to return to its pre-war level until end-2024.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest