Governor Yaron appears satisfied by the fiscal adjustments recently approved in the Cabinet

ISRAEL - Report 22 Jan 2024 by Jonathan Katz

1. The Governor appears cautiously optimistic regarding the recent fiscal adjustments approved in the Cabinet.

2. Inflation declined sharply in Q4 due to the impact of the war, but is likely to rise when hostilities diminish.

3. The labor market remains tight (with the number of officially unemployed workers low) and private consumption fairly strong, while shipping costs have increased sharply.

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