ISRAEL
Analyst
Sani Ziv
UN Economic ConsultantRecent Country Insights
Weekly Report - October 26, 2026: Israel heads to the polls; Bank of Israel signals a pause in rate cuts; economic growth remains strong but uneven
ISRAEL · Report · 26 Oct 2026
Israel heads to the October 27 elections amid uncertainty over the outcome and renewed threats of military escalation. The final polls give Netanyahu's bloc around 50 seats, compared with approximately 69 for the Zionist opposition and Arab parties combined. However, political deadlock remains a ...
Netanyahu warns of banking sanctions and proposes an unrealistic cryptocurrency solution
ISRAEL · In Brief · 26 Oct 2026
Prime Minister Benjamin Netanyahu warned on Friday that Israel could face international economic sanctions, including restrictions on its banking system. In a bizarre statement during an interview with Israel's Economy Channel, Netanyahu suggested that cryptocurrencies and blockchain technology c...
Pre-election political update - October 23, 2026: Eisenkot gains momentum but remains short of 61 seats; markets expected to react modestly
ISRAEL · Report · 23 Oct 2026
The latest polls show growing momentum for Eisenkot's bloc, but neither Zionist bloc is projected to reach the 61 seats needed to form a government without including Arab parties in the coalition. Our analysis of previous elections suggests that pre-election polls have been relatively accurate in...
Weekly Report - October 19, 2026: Election polls point to a dead heat between the two blocs; inflation surprises to the downside; BoI expected to hold rates
ISRAEL · Report · 19 Oct 2026
With Israel's October 27 election just eight days away, polls continue to point to a political deadlock, with neither bloc securing a majority. Opposition parties are preparing to advance legislation through the Knesset after the vote, hoping to attract another party to a new coalition or trigger...
September inflation remained low, but the Bank of Israel is likely to keep rates unchanged through year-end
ISRAEL · In Brief · 16 Oct 2026
Israel's September CPI declined by 0.5% m/m, below market expectations of a 0.2%–0.4% decline and our forecast of a 0.4% decline. Annual inflation increased slightly from 1.5% in August to 1.6%, mainly due to base effects, while core inflation edged up from 1.3% to 1.4%. Despite these increases, ...
IMF raises Israel's 2026 growth forecast to 4.5%
ISRAEL · In Brief · 13 Oct 2026
The International Monetary Fund (IMF) has raised its growth forecast for Israel to 4.5% in 2026, up from 3.5% previously. The upward revision appears reasonable given the strong rebound in GDP in the second quarter, where the economy expanded by 15.9% annualized, and given positive economic indic...
Weekly Report - October 12, 2026: Two weeks until the elections, September CPI in focus, fiscal deficit remains low
ISRAEL · Report · 13 Oct 2026
Last week's economic releases provided further evidence that the Israeli economy continues to expand at a relatively solid pace. The most encouraging developments were the rebound in credit-card spending, the improvement in current business conditions and continued strength in imports. The fiscal...
Political update – October 9, 2026: Electoral deadlock and the road to a new government
ISRAEL · Report · 09 Oct 2026
With three weeks to go, our weekly average of polls from Israel’s three main television channels (Kan 11, Channel 12 and Channel 13) shows the two blocs remain tied at around 52 seats each. Since August, Eisenkot’s bloc has fallen from around 59 seats to 52 seats while Netanyahu’s bloc has remain...
Weekly Report - October 5, 2026: Fuel-tax cut lowers near-term inflation; BoI set to pause; Israeli bonds outperform; election race remains tight
ISRAEL · Report · 05 Oct 2026
Israel returned from the holiday period with financial markets and the economic data calendar moving back toward normal activity. The main macro development during the holiday period was the Finance Minister's decision to largely offset the latest increase in gasoline prices through an additional...