ISRAEL
Analyst
Sani Ziv
UN Economic ConsultantRecent Country Insights
Israel faces institutional confrontation as government moves against Attorney General and Shin Bet Chief
ISRAEL · In Brief · 23 Mar 2025
The Israeli government unanimously passed a resolution expressing no confidence in Attorney General Gali Baharav-Miara—a move widely seen as paving the way for her dismissal. In response, Baharav-Miara sent a letter to the cabinet ministers, accusing them of seeking political loyalty rather than ...
Israel’s construction market in Q4: strong recovery but completions remained subdued; financing risks
ISRAEL · In Brief · 20 Mar 2025
Israel’s construction sector and housing prices have long occupied center stage in Israel’s economic discussions. The persistent shortage of Palestinian workers due to the war has caused delays and forced temporary shutdown of several construction sites, contributing to a rise in housing prices a...
Inflation in Israel slows in February below expectations; No imminent rate change expected
ISRAEL · In Brief · 16 Mar 2025
Inflation continues to ease: February CPI reading remains flat and below forecasts The Consumer Price Index (CPI) for February remained unchanged, below our expectations for a 0.2% increase, bringing the annual inflation rate down to 3.4%, from 3.8% in January. Core inflation indicators have also...
Israel’s budget deficit declines further in February; Treasury expected to slow bond issuance
ISRAEL · In Brief · 11 Mar 2025
The Ministry of Finance announced yesterday that Israel recorded a fiscal deficit of NIS 6.1 billion ($1.7 billion) in February. The trailing 12-month deficit fell to 5.3% of GDP, down from 5.8% in January, 6.9% in December, and a peak of 8.5% in September 2024. The decline is primarily attribute...
Israeli geopolitics: stability holds in Lebanon, but Gaza uncertainty and political tensions mount
ISRAEL · Report · 07 Mar 2025
1. Gaza ceasefire in jeopardy – The expiration of the first phase of the Israel-Hamas ceasefire on March 1 has made a return to war increasingly likely, as progress toward a second phase remains stalled. 2. Israel’s stance – Israel supports extending prisoner-hostage exchanges and humanitarian...
Macro risks remain lower than in 2024, but optimism weakens
ISRAEL · Report · 05 Mar 2025
Geopolitical risks in 2025 remain significantly lower compared to 2024. The ceasefire in Lebanon is holding, with the new government demonstrating a strong commitment to its continuation. At this stage, there are no immediate signs of escalation from Syria, and the Iranian axis appears to be weak...
Israel's wage growth slows to 2% in January, easing inflation concerns
ISRAEL · In Brief · 04 Mar 2025
In January 2025, wage growth in Israel slowed to a year-over-year increase of 2.0%, following an increase of 4.5% in December and a modest 0.9% increase in November. This marks a decline compared to the average 5.5% increase in April-October 2024 (see the chart below). We attributed the slowdown ...
Business sector indicators for January signal a return to pre-war levels
ISRAEL · In Brief · 26 Feb 2025
The Bank of Israel's Composite State-of-the-Economy Index increased by 0.6% in January, following an upward revision of December's data to 0.9% (compared to the previous estimate of 0.7%) and a revision of November's data to 0.3%. This rise in the index reflects a 0.9% increase in business sector...
Bank of Israel holds rate at 4.5%, maintains hawkish stance
ISRAEL · In Brief · 24 Feb 2025
The central bank of Israel kept its benchmark interest rate unchanged at 4.5% on February 24th, citing elevated inflation (3.8%) and a tight labor market. While the decision was widely anticipated, the central bank adopted a hawkish stance, emphasizing persistent inflation risks driven by geopoli...