ISRAEL
Analyst
Sani Ziv
UN Economic ConsultantRecent Country Insights
Bank of Israel Governor: Inflation at target midpoint; rate cuts likely once or twice, fiscal policy will push debt higher
ISRAEL · In Brief · 29 Apr 2026
The Governor of the Bank of Israel spoke yesterday at a conference held by the Aaron Institute. He stressed the resilience of the Israeli economy during the recent shocks, as reflected in financial indicators, private consumption data (credit-card spending), and tax revenues. The Governor noted t...
Former Israeli PMs Bennett and Lapid join forces ahead of elections to form the largest party
ISRAEL · In Brief · 27 Apr 2026
In an interesting political development, Yair Lapid, head of the Yesh Atid party and former prime minister, and Naftali Bennett, a former prime minister, have agreed to unite politically ahead of the next elections. Bennett is expected to lead the joint list, with Lapid serving as number two. The...
Imports fell sharply in March amid the war, but the trade deficit widened in Q1, which could eventually lead to upward pressure on the exchange rate
ISRAEL · In Brief · 24 Apr 2026
Foreign trade data for March, which was the first full month of the war, pointed to a sharp contraction in imports, which fell by 12% m/m, although they remained 2% higher y/y. The decline was broad-based: Consumer goods imports dropped by 16%, raw materials by 10%, and investment goods by 22%. I...
Geopolitics remain the main driver, shekel strength deepens; inflation under control - Weekly report, April 21, 2026
ISRAEL · Report · 21 Apr 2026
Key developments and outlook - Geopolitics remains the dominant driver: While the recent ceasefires have reduced immediate risks, uncertainty around a potential U.S.-Iran agreement and the fragile ceasefire in Lebanon could lead to another round of fighting in the coming weeks. - For the ...
Past week review and week ahead: March CPI, budget, and geopolitics in focus - Weekly report, April 13, 2026
ISRAEL · Report · 13 Apr 2026
After nearly two weeks of holiday-related slowdown, economic activity in Israel resumed yesterday, alongside a continued ceasefire and a gradual return to routine. Equity markets responded positively to the cease-fire, with the TA-35 rising by 1.9% and the TA-90 gaining 1.6% in Friday’s session. ...
Past week review and week ahead: macroeconomic and geopolitical developments - Weekly report, April 6, 2026
ISRAEL · Report · 06 Apr 2026
Last week was short due to the Passover holiday, with the main focus on the Bank of Israel's decision to keep rates unchanged at 4.0%. The rate announcement maintains a somewhat hawkish tone due to war and inflation risks. BoI growth forecasts for 2026 were revised down to around 3.8%, although a...
BoI holds rates at 4% with a hawkish tone; growth forecasts downgraded; 2026 budget passes with unrealistic assumptions
ISRAEL · In Brief · 30 Mar 2026
Bank of Israel leaves the policy rate at 4%, with a somewhat hawkish statement The Bank of Israel left the policy rate unchanged at 4.0%, in line with expectations, but we felt that the wording of the statement was clearly hawkish. The bank emphasized, as expected, the increase in geopolitical un...
Interest rates, U.S.-Iran negotiations, and markets in focus: macroeconomic and geopolitical developments - Weekly report, March 27, 2026
ISRAEL · Report · 27 Mar 2026
Headlines: - Israeli markets weakened sharply this week, driven by growing concerns over a potential agreement with Iran. The sell-off intensified today (Friday), with the TA-90 falling by 2.4% and the TA-125 by 3.5%, bringing weekly declines to 5.9% and 5.2%, respectively, and erasing all ga...
Broad unemployment rises due to war-related disruptions, including school closures and business shutdown
ISRAEL · In Brief · 24 Mar 2026
Early data point to the economic impact of the war in Israel. Yesterday, the CBS published labor market data for February. According to the CBS, the February survey partly covers the first week of March, reflecting the initial impact of the war, including business closures and workers placed on ...