Private sector wage pressure continues

ISRAEL - Report 06 Feb 2023 by Jonathan Katz

1. Bond yields declined, and the shekel appreciated, partially correcting for the recent sell-off, but both will continue to react to political developments.

2. Private sector wages continue to accelerate rapidly, while public sector pressure is mounting for a wage agreement.

3. Despite relatively weak private consumption growth in Q422, some modest improvement is expected in 2023.

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