Fiscal Balance in Israel
Israel - Fiscal BalanceThe economy likely lost some momentum in annual terms in the first quarter, with the manufacturing PMI averaging notably lower than in Q4. Nevertheless, growth should still have been solid, supported by the expansionary fiscal stance and a healthy labor market. The State of the Economy Index recorded solid readings throughout Q1, while business confidence was robust. On the political front, incumbent Benjamin Netanyahu’s Likud party and rival Benny Gantz’s Blue and White coalition both obtained 35 seats in parliament in a general election held on 9 April. Agreements with smaller parties should give Netanyahu a majority, although coalition talks are still ongoing. Economic policy is thus unlikely to change significantly, with a continued focus on keeping taxes low and boosting competitiveness. However, political instability is possible given the fractured parliamentary arithmetic.
Israel - Fiscal Balance Data
|Fiscal Balance (% of GDP)||-3.1||-2.7||-2.1||-2.1||-2.0|
5 years of economic forecasts for more than 30 economic indicators.
Israel Fiscal Balance Chart
Source: Central Bank of Israel.
|Bond Yield||2.00||-1.69 %||May 13|
|Exchange Rate||3.57||-0.37 %||May 13|
|Stock Market||1,420||-0.91 %||May 13|
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May 20, 2019
At its 20 May meeting, the Monetary Committee of the Bank of Israel (BoI) kept the interest rate unchanged at 0.25%, as had been widely expected by market analysts.
May 19, 2019
The Purchasing Managers’ Index (PMI), produced by Bank Hapoalim and the Israeli Purchasing & Logistics Managers Association (IPLMA), fell from 52.2 in March to 51.9 in April, but remained above the neutral 50-point mark separating contraction from expansion in the manufacturing sector. The change in the headline figure was driven by slower growth in production and employment, and a sharper contraction in export demand.
May 19, 2019
Merchandise exports contracted 18.0% year-on-year in April in USD terms, contrasting March’s 12.7% growth.
May 16, 2019
Confidence among Israeli households improved from minus 8 in March to minus 7 in April.
Israel: The economy gains pace in the first quarter, although temporary factors flatter the headline reading
May 16, 2019
The economy expanded 5.2% in quarter-on-quarter seasonally adjusted annualized rate (qoq SAAR) terms.