Macroeconomic Outlook Report: Israel

Macroeconomic Outlook Report: Israel

Summary

Transport, storage and communication activities contributed 17.5% to Israel’s gross value added (GVA) in 2024, followed by mining, manufacturing and utilities activities (13.6%), and wholesale, retail and hotels activities (11.4%). In nominal terms, the three sectors are forecast to grow by 6.7%, 6.6%, and 6.0%, respectively, in 2025.

Tel Aviv and Jerusalem accounted for 59.9% of the country’s GDP and 59.0% of Israel’s population in 2024, according to GlobalData estimates.

As of October 2024, Israel began the construction of new infrastructure along the Philadelphi Corridor, a border area between Gaza and Egypt, aimed at enhancing security and preventing smuggling. The project includes the installation of advanced surveillance systems and the reinforcement of existing barriers. This development follows ongoing tensions and security concerns related to Hamas and other militant groups operating in the region.

Scope

• Macroeconomic Country Outlook Reports evaluate a country's investment potential through its political, economic, social, technological, legal, and environmental (PESTLE) framework.
• This comprehensive analysis offers a holistic view of the economy, serving as a strategic tool to understand market dynamics, business potential, and operational direction. Each PESTLE factor is examined based on four parameters: current strengths, current challenges, future prospects, and future risks.
• These insights support strategic planning by highlighting opportunities and risks within the economy, helping businesses and investors make informed decisions. The report aims to provide a detailed understanding of the country's macroeconomic environment to facilitate effective decision-making and strategy development.

• Macroeconomic Outlook Report identifies the potentials of the country as an investment destination by analyzing the political, economic, social, technological, legal and environmental (PESTLE) structure.
• PESTLE Insights provides 360 degree view of the economy which can be used as a strategic tool to understand the market dynamics, business potentials and direction of operations
• Along with providing the country’s snapshot, the report captures the risk factors pertaining to the macroeconomic risks, political environment, legal environment, demographic and social structure effectiveness, technology & infrastructure and natural and geographic aspects that might impact business.
• This report also highlights key clusters/cities which contribute significantly to the country GDP and population along with major companies’ presence in these areas.