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Macro - Country Economic Forecasts - Israel

Publisher Oxford Economics
Published Jan 30, 2026
Length 8 Pages
SKU # OFE20872806

Description

We've raised our GDP growth forecasts for Israel by 1ppt to 5.2% in 2026 and 0.5ppts to 4.3% in 2027. In our view, very solid underlying economic fundamentals will reassert themselves as the impact of the conflict with Hamas continues to fade. This will support a further easing in supply constraints, particularly in the labour market, and drive an upturn in private sector demand. These factors are expected to more than offset the drags from a modest tightening of fiscal policy and the hit to exports and business investment from changes in US trade policy.

Table of Contents

8 Pages
Israel: Growth prospects improve as headwinds continue to fade
Forecast overview
Recent developments
Short-term outlook
Key drivers of our short-term forecast
Economic risk
Economic risk evaluation
Risk warnings
What to watch out for
Exposure to key global risks
Long-term prospects
Alternative long-run scenarios
Background
Economic development
Structure of the economy
Balance of payments and structure of trade
Policy
Politics

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