Israel Economic Outlook
October 2, 2018Although economic growth slowed in the second quarter, data points to solid economic momentum in the third quarter. The Central Bank’s State of the Economy Index edged up in July and the PMI readings in the first two months of the quarter trended above the average reading in the previous quarter—although the PMI did drop markedly in August on slower growth in domestic orders and output. Moreover, business confidence remained elevated in August. On the other hand, in the same month consumer confidence deteriorated on increased pessimism regarding the country’s economic situation, while exports contracted on a broad-based deterioration in foreign demand and the trade deficit widened over the same month a year ago.
Israel Economic GrowthIn the second half of the year and next year, robust domestic demand should keep economic momentum afloat. A lower tax burden and still favorable financial conditions should support private consumption. Meanwhile, new gas- and oil-related projects will likely buttress fixed investment. However, regional tensions remain a downside risk to the outlook. Met the why particular Consensus Forecast panelists forecast economic growth of 3.5% this year. Next year, our panel sees the economy expanding 3.2%, which is unchanged from last month’s forecast.
Israel Economy Data
5 years of Israel economic forecasts for more than 30 economic indicators.
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|Bond Yield||2.46||-1.69 %||Oct 16|
|Exchange Rate||3.65||-0.37 %||Oct 16|
|Stock Market||1,456||-0.91 %||Oct 16|
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Israel Economic News
October 8, 2018
The Bank of Israel’s Composite State of the Economy Index grew 0.36% month-on-month in August.
October 8, 2018
On 8 October, the Monetary Committee of the Bank of Israel stood pat and kept its interest rate steady at the historic low of 0.11%, where it has been since February 2015. The decision, widely expected by market analysts, came on the back of a largely unchanged inflation outlook “despite slightly lower than expected recent CPI readings”.
September 20, 2018
Business conditions in Israel continued to improve midway through the third quarter, albeit at a softer pace, as the Purchasing Managers’ Index (PMI)—produced by Bank Hapoalim together with the Israeli Purchasing & Logistics Mangers Association (IPLMA)—fell to 50.4 points in August from 58.0 points in July. August’s print largely reflected a sharp contraction in foreign orders, as well as slower growth in domestic orders and output.
September 19, 2018
In August, confidence among consumers deteriorated while firms became more optimistic. Data released by the Central Bureau of Statistics (CBS) showed that consumer confidence dropped from minus 8.0 points in July to minus 12.9 points in August.
September 17, 2018
Israeli exports contracted 0.8% in August over the same month a year ago in USD terms, contrasting July’s revised 5.1% expansion (previously reported: +7.9% year-on-year).