Macro - Country Economic Forecasts - Israel

Macro - Country Economic Forecasts - Israel

We have lowered our GDP growth outlook for Israel to 2.9% in 2023 from 3.5% as weaker international demand weighs on Israeli exports. High inflation and tighter financial conditions will depress business activity, mainly via lower private consumption and investment. Still, we have raised our 2024 GDP growth forecast to 3.1% from 2.5% in view of the improved global financial conditions, which are boosting economic activity both domestically and abroad. Risks to our forecast include weaker external demand caused by prolonged inflation outside of Israel, higher-than-expected domestic wage inflation, and a fast moderation of house prices.