ISRAEL
Analyst
Sani Ziv
UN Economic ConsultantRecent Country Insights
Israel's high-tech sector continues to expand
ISRAEL · In Brief · 01 Jul 2026
Recent data on high-tech services exports (April) and startup fundraising (June) suggest that Israel's technology sector continues to demonstrate resilience despite geopolitical challenges. Israeli startups raised approximately USD 8.45 billion during the first half of 2026, including a record US...
Weekly report, June 29, 2026: Netanyahu prepares for a post-election deadlock; markets reassess geopolitical risk, AI valuations, and the upcoming Bank of Israel rate decision
ISRAEL · Report · 29 Jun 2026
Executive Summary - Netanyahu's agreement with the ultra-Orthodox parties appears aimed at preserving the Likud-ultra-Orthodox bloc after the elections. With current polls pointing to the loss of the coalition's parliamentary majority, the agreement reduces the likelihood that the ultra-Ortho...
Weekly report, June 22, 2026: May CPI surprises on the downside; U.S.-Iran agreement reshapes market sentiment; shekel reverses course
ISRAEL · Report · 22 Jun 2026
Key headlines: - The U.S.-Iran agreement dominated market attention last week. The agreement raised concerns in Israel regarding Iran's continued nuclear activities, the economic relief provided to Tehran, and limitations on Israel's future freedom of action in Lebanon. These concerns were re...
Index of economic activity in May remains below pre-war levels
ISRAEL · In Brief · 18 Jun 2026
The Bank of Israel’s Monthly Index of Economic Activity declined by 0.4% in May. The index reflects the average monthly growth rate over the March-May period and captures the impact of the war on economic activity. The index readings for the previous two months were revised downward following the...
May CPI fell by 0.3%; strong shekel and lower oil prices support further rate cuts
ISRAEL · In Brief · 16 Jun 2026
The May CPI fell by 0.3%, slightly below market expectations for a decline of 0.1%-0.2%. The decline was driven mainly by a sharp drop in overseas travel prices (-9.3%), reflecting both seasonal factors (airfare prices typically decline in May after the Passover holiday) and the sharp appreciatio...
Weekly report, June 12, 2026: fiscal outlook improves; focus shifts to May CPI and emerging U.S.-Iran deal
ISRAEL · Report · 12 Jun 2026
This week's data continued to point to a resilient Israeli economy despite renewed geopolitical uncertainty. Consumer confidence returned to its pre-war level, supporting a gradual recovery in private consumption, while fiscal performance remained stronger than expected. Strong direct-tax revenue...
Budget deficit remains stable in May despite the war; stronger tax revenues support fiscal outlook
ISRAEL · In Brief · 10 Jun 2026
Israel's fiscal deficit remained broadly unchanged in May at 3.8% of GDP (more precisely, 3.75%), equivalent to approximately NIS 81 billion. The monthly deficit in May totaled NIS 8.3 billion, broadly similar to the deficit recorded in May 2025. Overall, the fiscal data remain favorable for the ...
Weekly report, June 8, 2026: Bank of Israel signals faster rate cuts, shekel reverses course, elections likely in October, Iran-Israel tensions escalate again
ISRAEL · Report · 08 Jun 2026
Key developments and outlook: - The war between Iran and Israel resumed following an Iranian attack on northern Israel and an Israeli response targeting sites in Iran. The United States is attempting to contain the conflict in order to preserve momentum in the negotiations with Iran. - Isra...
High-tech sector continues to drive shekel strength and economic growth
ISRAEL · In Brief · 01 Jun 2026
If we seek to understand the sources of the substantial foreign-currency inflows into Israel and the factors underlying the exceptional appreciation of the shekel, the recently published data on high-tech services exports and capital raised by Israeli start-up companies provide an important part ...