The CA surplus continues to decline, but FDI remains strong

ISRAEL - Report 24 Sep 2018 by Jonathan Katz

The current account surplus continues to decline while net FDI remains robust. Housing completions increased sharply in Q218, supportive of subdued rental prices. Non-housing credit growth is slowing and is likely to restrain household spending. With the shekel strong and the inflationary environment still low, a rate hike is likely to be postponed to Q219.

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