ISRAEL
Analyst
Sani Ziv
UN Economic ConsultantRecent Country Insights
Israeli fiscal deficit edges up to 4.9% of GDP in January
ISRAEL · In Brief · 10 Feb 2026
The Ministry of Finance reported a fiscal surplus of NIS 16.9 billion ($5.3 billion) in January 2026, with the trailing 12-month deficit increasing to 4.9% of GDP, from 4.7% in December. The budget deficit peaked at 8.5% of GDP in September 2024. Direct taxes surprised on the upside, while indire...
Macroeconomic and geopolitical developments – Weekly report, February 9, 2026
ISRAEL · Report · 09 Feb 2026
Israel’s political arena remains highly turbulent, centered on three interlinked fronts: the 2026 state budget, which must be approved by March 31; the military conscription legislation, which remains stalled at the level of legal advisers; and, more recently, Prime Minister Netanyahu’s publicati...
Institutional FX sales drive shekel appreciation, following non-resident flows in Q2–Q3
ISRAEL · In Brief · 04 Feb 2026
Since September 2024, the shekel has strengthened markedly, reaching multi-year highs and outperforming most major currencies. Over this period, the shekel has appreciated by around 18% against the U.S. dollar, about 23% against the Japanese yen, and roughly 12% against the euro. At the same time...
Macroeconomic and geopolitical developments – Weekly report, February 3, 2026
ISRAEL · Report · 03 Feb 2026
Recent data point to a clearer improvement in Israel’s macroeconomic fundamentals toward year-end 2025, supported by a rebound in activity, strong high-tech exports, and easing inflationary pressures. The recent upgrade in Israel’s credit outlook will reinforce confidence in the macro-fiscal envi...
Israel enters 2026 with lower financing needs, despite higher bond issuance in February
ISRAEL · In Brief · 02 Feb 2026
The government’s monthly issuance plan for February 2026 is to raise NIS 12.0 billion in tradable bonds on the local capital market in four weekly tenders, averaging NIS 3 billion per week. This represents a slightly higher pace than in recent months. In 2025, average monthly issuance stood at ar...
The Knesset approved the budget in its first reading, increasing the likelihood that it will also pass its second and third readings by March
ISRAEL · In Brief · 30 Jan 2026
Israel’s Knesset has approved the 2026 state budget in its first reading, by a 62-55 majority, following negotiations with ultra-Orthodox parties. The proposed budget must still pass second and third readings by March 31; failure to do so would trigger the dissolution of the Knesset and early ele...
Macroeconomic and geopolitical developments – Weekly report, January 26, 2026
ISRAEL · Report · 26 Jan 2026
This week’s update is dominated by geopolitical uncertainty, with rising tensions surrounding Iran. At this stage, a U.S. military strike is not a certain outcome, and developments could still evolve toward increased diplomatic pressure or a negotiated arrangement. Nevertheless, the risk of escal...
Macroeconomic and geopolitical developments – Weekly report, January 20, 2026
ISRAEL · Report · 20 Jan 2026
The past week was dominated by the December CPI and full-year inflation data for 2025. Annual inflation stood at 2.6%, returning to the target range for the first time in three years. The Bank of Israel has begun easing, but in our view further rate cuts are more likely toward the end of Q2 2026....
December CPI flat; annual inflation drops to 2.6%, within target after three years above it; The rate-cutting cycle is expected to continue into 2026
ISRAEL · In Brief · 16 Jan 2026
We attach a brief update following last night’s CPI release. A fuller analysis, including our inflation forecasts for 2026–2027, will follow early next week. December CPI flat, in line with expectations; annual inflation eases to 2.6%, within target after three years above it Israel’s consumer pr...