Israel Economic Forecast

Israel Economic Outlook

June 4, 2019

The economy surged in the first quarter of the year. Although this was partly on a frontloading of vehicle purchases ahead of fiscal changes on 1 April, underlying growth was still solid, buoyed by a healthy labor market and a stronger external sector. Turning to the second quarter, available indicators point to a fairly robust start, notwithstanding external weakness. In April, growth in the Composite State of the Economy Index ticked up, while business and consumer sentiment improved; however, merchandise exports plummeted in the same month, which also fed through to a lower manufacturing PMI reading. In the political arena, MPs voted to dissolve Parliament on 29 May, triggering fresh elections for September, after incumbent Prime Minister Benjamin Netanyahu failed to form a coalition government. While this increases political uncertainty, the economic fallout should be limited.

Israel Economic Growth

Growth should be sprightly this year, supported by the strong labor market, fairly loose fiscal policy and healthy external demand for high-tech service exports. Moreover, the development of the Leviathan gas field should boost investment. Rising global trade protectionism and geopolitical tensions pose downside risks to growth. Met the why particular analysts expect growth of 3.3% in 2019, which is up 0.1 percentage points from last month’s forecast, and 3.4% in 2020.

Israel Economy Data

20132014201520162017
Population (million)8.18.28.48.58.7
GDP per capita (USD)36,01239,19136,78737,09241,541
GDP (USD bn)290322308317362
Economic Growth (GDP, annual variation in %)4.23.52.64.03.3
Consumption (annual variation in %)3.74.23.75.53.2
Investment (annual variation in %)3.60.8-0.811.92.7
Industrial Production (annual variation in %)0.51.22.21.73.7
Unemployment Rate6.35.95.34.84.2
Fiscal Balance (% of GDP)-3.1-2.7-2.1-2.1-2.0
Public Debt (% of GDP)66.065.362.660.759.1
Inflation Rate (CPI, annual variation in %, eop)1.8-0.2-1.0-0.20.4
Inflation Rate (CPI, annual variation in %)1.50.5-0.6-0.50.2
Policy Interest Rate (%)1.000.250.110.110.11
Exchange Rate (vs USD)3.473.893.903.853.47
Exchange Rate (vs USD, aop)3.613.583.893.843.60
Current Account (% of GDP)3.03.75.03.82.9
Current Account Balance (USD bn)8.711.915.512.011.5
Trade Balance (USD billion)-7.9-7.2-3.3-7.4-9.5
Exports (USD billion)62.463.556.756.258.0
Imports (USD billion)70.270.760.063.567.5
Exports (annual variation in %)2.21.9-11.8-0.93.3
Imports (annual variation in %)-0.20.7-15.25.96.3
International Reserves (USD)81.886.190.698.4113
External Debt (% of GDP)34.529.327.927.724.7

Sample Report

5 years of Israel economic forecasts for more than 30 economic indicators.

Download

Sample Report

Get a sample report showing our regional, country and commodities data and analysis.

Download

Israel Facts

ValueChangeDate
Bond Yield1.74-1.69 %Jun 13
Exchange Rate3.59-0.37 %Jun 13
Stock Market1,447-0.91 %Jun 13

Request a Trial

Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.

Sign Up

Israel Economic News

Search form