ISRAEL
Analyst
Sani Ziv
UN Economic ConsultantRecent Country Insights
Macroeconomic and geopolitical developments – Weekly report, February 3, 2026
ISRAEL · Report · 03 Feb 2026
Recent data point to a clearer improvement in Israel’s macroeconomic fundamentals toward year-end 2025, supported by a rebound in activity, strong high-tech exports, and easing inflationary pressures. The recent upgrade in Israel’s credit outlook will reinforce confidence in the macro-fiscal envi...
Israel enters 2026 with lower financing needs, despite higher bond issuance in February
ISRAEL · In Brief · 02 Feb 2026
The government’s monthly issuance plan for February 2026 is to raise NIS 12.0 billion in tradable bonds on the local capital market in four weekly tenders, averaging NIS 3 billion per week. This represents a slightly higher pace than in recent months. In 2025, average monthly issuance stood at ar...
The Knesset approved the budget in its first reading, increasing the likelihood that it will also pass its second and third readings by March
ISRAEL · In Brief · 30 Jan 2026
Israel’s Knesset has approved the 2026 state budget in its first reading, by a 62-55 majority, following negotiations with ultra-Orthodox parties. The proposed budget must still pass second and third readings by March 31; failure to do so would trigger the dissolution of the Knesset and early ele...
Macroeconomic and geopolitical developments – Weekly report, January 26, 2026
ISRAEL · Report · 26 Jan 2026
This week’s update is dominated by geopolitical uncertainty, with rising tensions surrounding Iran. At this stage, a U.S. military strike is not a certain outcome, and developments could still evolve toward increased diplomatic pressure or a negotiated arrangement. Nevertheless, the risk of escal...
Macroeconomic and geopolitical developments – Weekly report, January 20, 2026
ISRAEL · Report · 20 Jan 2026
The past week was dominated by the December CPI and full-year inflation data for 2025. Annual inflation stood at 2.6%, returning to the target range for the first time in three years. The Bank of Israel has begun easing, but in our view further rate cuts are more likely toward the end of Q2 2026....
December CPI flat; annual inflation drops to 2.6%, within target after three years above it; The rate-cutting cycle is expected to continue into 2026
ISRAEL · In Brief · 16 Jan 2026
We attach a brief update following last night’s CPI release. A fuller analysis, including our inflation forecasts for 2026–2027, will follow early next week. December CPI flat, in line with expectations; annual inflation eases to 2.6%, within target after three years above it Israel’s consumer pr...
Recent data point to a sustained recovery in economic activity in Q4, alongside cooling consumer confidence
ISRAEL · In Brief · 15 Jan 2026
The Monthly Index of Economic Activity, published by the Bank of Israel, rose 0.3% in December, in line with its long-term growth trend. The index, which reflects the average monthly growth estimate for the period from October to December, suggests that growth in the fourth quarter resumed its ri...
Fiscal deficit in 2025 falls to 4.7%, well below forecast
ISRAEL · In Brief · 14 Jan 2026
Israel’s fiscal deficit narrowed more than expected in 2025, falling to 4.7% of GDP from 6.8% in 2024 and below the original 5.2% target. Nominal government spending rose by 4.8%, while revenues surged by 13.8%. Tax collections surprised on the upside even after accounting for the tax hikes imple...
Macroeconomic and geopolitical developments – Weekly report, January 12, 2026
ISRAEL · Report · 12 Jan 2026
The past week was marked by the Bank of Israel’s rate cut and the market’s reaction to this somewhat unexpected move. This came alongside heightened geopolitical developments, most notably the expanding protests in Iran. While the latter do not yet have a direct impact on Israel’s macro outlook, ...