Services

NEWS FLASH

UPCOMING WEBINAR - CAUCASUS AND CENTRAL ASIA: ECONOMIC UPSWINGS AND POL...

Learn More

COUNTRY INSIGHTS

Uemployment declines sharply
ISRAEL · In Brief · 20 Mar 2023 · 1 response

Unemployment declined in February to 3.9% from 4.3% in January (sa) with the employment ratio up to 61.4% from 61.2% (employed/working age population). The number of employed continued to increase  fairly rapidly in February. This positive labor print strengthens our conviction that the likelihoo...

Inflation remains sticky and broad based
ISRAEL · Report · 20 Mar 2023

1. Inflation in February surprised on the upside and remains both sticky and broad-based. 2. Most macro factors support weaker inflationary pressure going forward, except for the likelihood of further shekel weakness. 3. At this stage, we expect a 0.5% rate hike on April 3, as the BoI is li...

Inflation remains sticky and broad based
ISRAEL · In Brief · 19 Mar 2023

Inflation surprises on the upside February’s CPI increased by 0.5% m/m compared to expectations for 0.3%. Core inflation remains stable year-on-year at 5.1%. Both housing rental (6.8% y/y) and non-housing services (5.7%) accelerated. 75.6% of all CPI items are up more than 3% y/y compared to 72.8...

Inflation continues to surprise on the upside
ISRAEL · In Brief · 15 Mar 2023

Inflation continues to surprise on the upside February’s CPI came in at 0.5% m/m (expectations were for 0.3%) and 5.2% y/y (down slightly from 5.4% last month). Core inflation remained stable at 5.1% y/y. Several service items surprised on the upside such as domestic vacations (3.5% m/m) and hous...

External fundamentals appear less shekel supportive 
ISRAEL · Report · 13 Mar 2023

1. External fundamentals appear less shekel supportive as the goods/services surplus continues to decline. 2. The shekel will continue to react more to global equity movements and the domestic uncertainty regarding the judicial measures. 3. Tax revenues continue to decline and are likely to...

Israeli savings institutions shift more investments abroad
ISRAEL · In Brief · 13 Mar 2023

In January, Israeli savings institutions were net FX purchasers of 4.5bn USD, buying assets abroad totally 3.8bn and reducing their FX hedge by 0.7bn. Their FX exposure increased to 18% of all assets under management from 16.5%. This is a significant jump to a level not witnessed in the past two ...

External fundamentals appear less shekel supportive
ISRAEL · In Brief · 12 Mar 2023

The goods/services surplus declined in Q422 Although the headline current surplus improved in Q422, the more important breakdown of good/services account reflect a declining surplus to 3.4bn USD in Q4 from 3.9bn in Q3. FDI into Israel surged in Q422 to 9.4bn USD compared to 6.8bn in Q3. 2023 will...

No BoI FX intervention in February
ISRAEL · In Brief · 06 Mar 2023

The Bank of Israel did not sell FX at all in February. The reserves did decline by 4.7ml USD due mostly to revaluation (global dollar appreciation). This underlines the BoI policy of avoiding FX intervention unless there is tremendous market dislocation in the short term. The weakening of the she...

Inflation risks shift from wages to FX volatility
ISRAEL · Report · 06 Mar 2023

1. Business sentiment and outlook remained positive in February. 2. Wage growth moderated in Q422, and a modest public sector wage agreement reduces the chances of a wage-price spiral. 3. The major risk to inflation remains shekel depreciation, which will be dependent on the judicial measu...

Inflation risks shift from wages to FX volatility
ISRAEL · In Brief · 05 Mar 2023

Business sentiment remains strong The Business Tendency Survey in February reflects strong and steady growth with some improvement in the expectation components as well. The expectation for change in employment also improved in general, and in the hi-tech service sector (information and communica...

Shekel weakness likely to continue without a reasonable compromise regarding the judicial measures
ISRAEL · In Brief · 26 Feb 2023

Israeli macro highlights 27/2/23 The main issue impacting markets recently has been the judicial measures pushing forward in the Israeli Knesset. Part of these reforms were voted upon last week (1st vote out of three) and further progress on this legislation is expected this week. So far, no real...

Rates move 0.5% up to 4.25%
ISRAEL · In Brief · 20 Feb 2023

The Bank of Israel raised rates by 0.5% noting that growth remains robust (with some softening of business expectations), the labor market tight (with some moderation in recent months). The BoI noted the increased volatility the shekel exchange rate. Inflation remains broad-based, and inflation e...

Rate hike of 0.5% expected on Monday
ISRAEL · In Brief · 17 Feb 2023

Rate hike of 0.5% expected on Monday Recent economic and political developments in Israel will support a more aggressive monetary tightening than initially expected. We expect a hike of 0.5% to 4.25% tomorrow, due to the following factors: The inflationary environment remains “sticky”. Core infla...

January’s CPI surprises on the upside
ISRAEL · In Brief · 15 Feb 2023

January’s CPI surprises on the upside Inflation in January was up 0.3% and 5.4% y/y (accelerating from 5.3% last month). Market expectations (and ours) were for 0.1% m/m. Housing rental prices surprised on the upside, with OER accelerating to 6.7% from 6.3%. In addition, the seasonal decline in a...

Probability of a 0.5% rate hike next week has increased
ISRAEL · Report · 13 Feb 2023

1. Shekel weakening continues on the back of uncertainty regarding the implications of the planned judicial reforms. 2. If this trend continues this week, a 0.5% rate hike next week will become increasingly likely. 3. We expect a fiscal deficit of 3.7% GDP this year, following a surplus las...

Copyright 2024 GlobalSource Partners. All rights reserved.