2024-04-17 02:48:30
The International Monetary Fund (IMF) has published its macroeconomic forecast for the Israeli economy. According to updated data, the lower limit of the country’s GDP growth this year is estimated at 1.6%.
This was reported by the IMF press service, as reported by “Details”.
This figure is lower than the expectations of the Bank of Israel, which predicted growth at 2%, and also significantly lower than the previous IMF forecast, which was 3.1%. The International Monetary Fund’s 2025 forecast puts Israel’s GDP growth at 5.4%, slightly below Treasury expectations (5.6%) and slightly above the Bank of Israel’s forecast (5%).
According to the IMF, by the end of 2024, inflation in Israel is expected to hover at 2.4%, lower than the forecast of the Bank of Israel’s research unit, which estimates it at 2.7%.
Cursor previously wrote that the war against Hamas terrorists had a serious impact on the Israeli economy, leading to a historic 19.4% year-on-year drop in GDP in the fourth quarter of last year. To provide housing for more than 120 thousand evacuated residents from the northern and southern border areas, the government was forced to allocate funding for housing construction.
In addition, Cursor has already reported that the Israeli economy may soon face serious challenges that could make it difficult to overcome the deepening financial crisis, aggravated by military operations. Currently, the government actually has to apply for loans abroad at a higher interest rate than before the outbreak of hostilities. The rate is 7%, which exceeds the pre-war level of 5.5%.
2024-04-17 02:48:30