ISRAEL
Analyst
Sani Ziv
UN Economic ConsultantRecent Country Insights
Israeli institutional FX sales drive shekel weakness
ISRAEL · In Brief · 05 May 2026
Israeli institutional investors sold $5.2 billion in the first quarter of 2026, following sales of about $13 billion in the fourth quarter of 2025. These data are consistent with a reduction in their dollar exposure, mainly through increased hedging and adjustments to rising U.S. equity markets, ...
Private consumption declined sharply in March and partially recovered in April; high-tech services exports remain strong
ISRAEL · In Brief · 04 May 2026
Private consumption declines in March, recovery expected to be gradual Credit card purchases fell by 11.9% in March (real terms, seasonally adjusted), reflecting the disruption to economic activity caused by the war. By comparison, during Operation “Rising Lion” in June 2025, purchases declined b...
Weekly report, May 1, 2026: Israeli politics heats up toward elections, while the shekel strengthens despite geopolitical and economic risks
ISRAEL · Report · 01 May 2026
Key developments and outlook: - Geopolitics: U.S.–Iran negotiations remain stalled, while fighting in Lebanon is gradually intensifying, increasing the likelihood of another round of fighting. - Politics: Former Prime Minister Naftali Bennett and opposition leader Yair Lapid announced a joi...
Bank of Israel Governor: Inflation at target midpoint; rate cuts likely once or twice, fiscal policy will push debt higher
ISRAEL · In Brief · 29 Apr 2026
The Governor of the Bank of Israel spoke yesterday at a conference held by the Aaron Institute. He stressed the resilience of the Israeli economy during the recent shocks, as reflected in financial indicators, private consumption data (credit-card spending), and tax revenues. The Governor noted t...
Former Israeli PMs Bennett and Lapid join forces ahead of elections to form the largest party
ISRAEL · In Brief · 27 Apr 2026
In an interesting political development, Yair Lapid, head of the Yesh Atid party and former prime minister, and Naftali Bennett, a former prime minister, have agreed to unite politically ahead of the next elections. Bennett is expected to lead the joint list, with Lapid serving as number two. The...
Imports fell sharply in March amid the war, but the trade deficit widened in Q1, which could eventually lead to upward pressure on the exchange rate
ISRAEL · In Brief · 24 Apr 2026
Foreign trade data for March, which was the first full month of the war, pointed to a sharp contraction in imports, which fell by 12% m/m, although they remained 2% higher y/y. The decline was broad-based: Consumer goods imports dropped by 16%, raw materials by 10%, and investment goods by 22%. I...
Geopolitics remain the main driver, shekel strength deepens; inflation under control - Weekly report, April 21, 2026
ISRAEL · Report · 21 Apr 2026
Key developments and outlook - Geopolitics remains the dominant driver: While the recent ceasefires have reduced immediate risks, uncertainty around a potential U.S.-Iran agreement and the fragile ceasefire in Lebanon could lead to another round of fighting in the coming weeks. - For the ...
Past week review and week ahead: March CPI, budget, and geopolitics in focus - Weekly report, April 13, 2026
ISRAEL · Report · 13 Apr 2026
After nearly two weeks of holiday-related slowdown, economic activity in Israel resumed yesterday, alongside a continued ceasefire and a gradual return to routine. Equity markets responded positively to the cease-fire, with the TA-35 rising by 1.9% and the TA-90 gaining 1.6% in Friday’s session. ...
Past week review and week ahead: macroeconomic and geopolitical developments - Weekly report, April 6, 2026
ISRAEL · Report · 06 Apr 2026
Last week was short due to the Passover holiday, with the main focus on the Bank of Israel's decision to keep rates unchanged at 4.0%. The rate announcement maintains a somewhat hawkish tone due to war and inflation risks. BoI growth forecasts for 2026 were revised down to around 3.8%, although a...