The Labor market tightens, supportive of wage pressure

ISRAEL - Report 27 Dec 2021 by Jonathan Katz

1. An increasingly tight labor market is expected to support wage pressure and therefore some inflationary pressure as well.

2. Economic indicators point to steady growth in early Q421, before the December Omicron concerns.

3. MSCI is likely to reclassify Israel in MSCI Europe (from Middle East) which should support capital inflows and shekel appreciation.

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