Israel Economic Outlook
July 31, 2018In Q2, the pace of growth likely decelerated somewhat, as PMI readings suggested a moderation in business activity, but remained solid nevertheless. Growth in industrial production remained robust in May despite softening from the previous month. Moreover, both business and consumer sentiment levels improved in Q2, with business confidence hitting the highest level on record in May. This comes after a third Q1 GDP estimate showed that the economy grew at a quicker rate than was previously estimated. GDP growth in the first quarter has now been revised upwards by half a percentage point since the release of the first estimate. The third release saw private consumption and export growth revised upwards, while fixed investment growth was revised downwards.
Israel Economic GrowthThe outlook remains positive, and economic growth should be robust this year and next. Solid domestic demand is expected to buttress the economy, with households likely to benefit from a lower tax burden and ultra-loose monetary policy and new gas- and oil-related projects boosting fixed investment. However, regional tensions remain high and continue to pose a downside risk to the economy, potentially dragging on inbound tourism, investor sentiment and export growth. Met the why particular Consensus Forecast panelists forecast economic growth of 3.5% this year, up 0.1 percentage points from last month. Next year, our panel sees the economy expanding 3.2%.
Israel Economy Data
5 years of Israel economic forecasts for more than 30 economic indicators.
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|Bond Yield||2.23||-1.69 %||Aug 07|
|Exchange Rate||3.70||-0.37 %||Aug 07|
|Stock Market||1,431||-0.91 %||Aug 07|
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Israel Economic News
July 29, 2018
Israel’s economy picked up pace at the end of the second quarter, according to the Bank of Israel’s Composite State of the Economy Index, growing 0.35% over the previous month in June.
Israel: Israeli manufacturing PMI returns to expansionary territory at the close of the second quarter
July 18, 2018
The Purchasing Managers’ Index (PMI)—produced by Bank Hapoalim in conjunction with the Israeli Purchasing & Logistics Managers Association (IPLMA)—jumped to 52.6 points in June from 49.6 points in May.
July 15, 2018
Consumer prices in Israel rose marginally in June over the prior month, increasing 0.1%.
July 12, 2018
Exports dropped 4.2% over a year ago in June, a softer contraction compared to May’s revised 5.1% decrease (previously reported: -8.3% year-on-year).
July 11, 2018
Sentiment levels dropped in June, according to data released by the Central Bureau of Statistics (CBS).