Israel Economic Outlook
February 5, 2019The Israeli economy accelerated strongly in the third quarter from the meager growth rate recorded in the second quarter, on the back of a stronger-than-previously-estimated performance from the external sector. Domestic demand, meanwhile, remained largely unchanged, barring a downward revision to private consumption growth. Looking at the final quarter of last year, the economy is expected to have maintained a robust pace of expansion. This is reflected by solid Composite State of the Economy data and a higher average manufacturing PMI, suggesting an improved performance by the manufacturing sector. Moreover, household consumption should have been buttressed by moderating inflationary pressures and significant gains in consumer sentiment, which—despite reaching a survey-record high in November—still remained entrenched in pessimistic territory. On the other hand, sentiment among businesses waned somewhat towards the end of the year.
Israel Economic GrowthDomestic demand should continue to support economic growth this year. Private consumption will likely benefit from a lower tax burden and still-favorable financial conditions. New gas- and oil-related projects are expected to boost fixed investment growth. On the other hand, regional tensions remain a key downside risk and cloud the outlook. Met the why particular Consensus Forecast panelists forecast economic growth to moderate to 3.2% in 2019, which is unchanged from last month’s forecast. In 2020, our panel sees the economy expanding 3.3%.
Israel Economy Data
5 years of Israel economic forecasts for more than 30 economic indicators.
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|Bond Yield||2.14||-1.69 %||Feb 14|
|Exchange Rate||3.66||-0.37 %||Feb 14|
|Stock Market||1,419||-0.91 %||Feb 14|
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Israel Economic News
January 27, 2019
The Bank of Israel’s Composite State of the Economy Index increased 0.24% over the prior month in December, just below a downwardly revised 0.26% expansion in November (previously reported: +0.32% month-on-month).
January 20, 2019
Israel’s manufacturing sector ended 2018 on a high note as the Purchasing Managers’ Index (PMI), produced by Bank Hapoalim and the Israeli Purchasing & Logistics Mangers Association (IPLMA) rose from 53.7 in November to 57.0 in December, the highest value in five months.
January 20, 2019
In December, exports contracted 6.6% year-on-year in USD terms, a sharper drop than the revised 4.0% drop in November (previously reported: -6.7% year-on-year).
January 16, 2019
A third reading of national accounts data, released on 16 January by the Central Bureau of Statistics (CBS), confirmed the preliminary reading of a 2.3% quarter-on-quarter expansion at a seasonally-adjusted annualized rate (SAAR) in the third quarter.
January 15, 2019
Consumer prices decreased 0.3% over the previous month in December, matching November’s drop in the price level.