Category: Israels

  • Israel’s fiscal deficit widens for 18th consecutive month

    Israel’s fiscal deficit has risen again for the 18th consecutive month, after reaching zero in March 2023. The deficit in the 12 months to the end of September this year reached 8.5% of GDP, or NIS 165.8 billion, the accountant said. General of the Ministry of Finance, Yali Rotenberg. I…

  • Treasury plans higher tax on Israel’s wealthiest

    As part of its plans to manage the fiscal deficit in 2025, the Ministry of Finance proposes to increase the additional tax on passive income such as interest. The Ministry proposes to raise the additional tax from its current rate of 3% to 5%, and expand it to include those…

  • Israel’s forex reserves again hit new record

    Israel’s foreign exchange reserves at the end of September 2024 reached a record level of $220.377 billion, an increase of $2.992 billion from their level at the end of August, which was itself a new record high, the Bank of Israel reported. The level of reserves in relation to GDP…

  • Analysis-Year of war creates cracks in Israel’s borrowing strength By Reuters

    Written by Libby George, Karen Strohecker and Stephen Shear LONDON/JERUSALEM (Reuters) – For nearly a year, the Israeli economy has weathered the chaos of a war that threatens to turn into a regional conflict, but rising borrowing costs have begun to put pressure on its financial structure. The direct cost…

  • Smotrich on Moody’s downgrade: Israel’s economy is strong

    Finance Minister Bezalel Smotrich gave an initial reaction last night to the downgrade of Israel’s sovereign rating by Moody’s to Baa1. In his statement, Bezalel tries to soften the blow, promising to pass the budget, hinting at planned austerity measures, perhaps in an attempt to send a signal to other…

  • IATI-RISE report warns on dangers to Israel’s tech industry

    How badly has Israel’s tech industry been damaged by war over the past year? It depends on who you ask. This morning Israel Advanced Technology Industries (IATI), which also represents foreign investors and Israeli development centers for American companies, in cooperation with the RISE Institute for Policy and Research in…

  • Moody’s: Lack of war exit strategy weighed on Israel’s rating

    After downgrading Israel’s credit rating last Friday, international rating agency Moody’s held a webinar for investors yesterday to explain the decision. Kathryn Muelbrunner, Moody’s Senior Vice President of Sovereign Risk Group, led the discussion and presented the considerations that led to a two-notch downgrade of Israel’s credit rating to Baa1,…

  • Israel’s population almost 10m on eve of 5785

    Israel’s population rose by 1.2%, or 118,000, over the past year to just over 9.9 million, the Central Bureau of Statistics reports. Israel’s population rose by 1.2%, or 118,000, over the past year to just over 9.9 million, the Central Bureau of Statistics reports. 7.689 million (78.6%) of Israel’s citizens…

  • S&P cuts Israel’s credit rating as “conflict intensifies”

    International rating agency Standard & Poor’s downgraded Israel’s sovereign credit rating for the second time in a few months and reiterated its negative outlook, meaning a further downgrade is expected in the next 18 months. The rating was lowered from A+ to A – which is a medium to high…

  • Moody’s cuts Israel’s rating by two notches

    The International Credit Classification Agency has issued a harsh report on the classification of the Israeli economy, announcing in an exceptional move that it reduced the country’s rating by two degrees from A2 to BAA1, with a negative future look. The new classification places Israel equally with countries such as…

  • Israel’s Immunai expands strategic tie with AstraZeneca

    Israeli company imperviousThe company, which develops artificial intelligence-based tools to improve drug discovery processes, has announced a strategic agreement with pharmaceutical company AstraZeneca. Immunai will receive $18 million from AstraZeneca in the initial phase of research, but the main importance of the deal is not the initial amount, but the…

  • Explaining Israel’s housing market paradox

    The least significant element in the CBS housing price figures is the annual rise between July-August 2023 and July-August 2024, the most recent period for which data is available. In that year, housing prices rose by 5.8%. But the Israeli real estate market after November of last year is not…

  • Israel’s gas royalties up 12.5% in H1 2024

    The Natural Resources Administration of the Ministry of Energy and Infrastructure today published its revenue report for the first half of 2024. Revenue from natural gas, minerals and raw materials in the first half of 2024 amounted to NIS 1.175 billion, an increase of 12% from NIS 1.044 billion in…

  • Israel’s budget chief warns on jump in interest rate costs

    Senior finance ministry officials warned of higher interest rates due to the state budget breach, economic uncertainty and war, saying that “increasing the budget framework could be dangerous for the economy and a negative signal to investors.” The Knesset Finance Committee today discussed a NIS 3.5 billion breach of the…

  • Foreign residents gradually returning to Israel’s housing market

    Some 28,000 Jews have immigrated to Israel since the start of the war, according to figures from the Ministry of Aliya and Integration. Estimates are that a few more thousand will arrive by the end of 2024, meaning there is a significant decrease from the 46,600 immigrants in 2023. Alongside…

  • Israel’s fiscal deficit climbs again

    Israel’s fiscal deficit rose again for the 17th consecutive month, after reaching zero in March 2023. The deficit in the 12 months to the end of August this year amounted to 8.3% of GDP, or NIS 161 billion, Finance Ministry Accountant General Yali Rotenberg reported today. The figure at the…

  • Israel’s forex reserves hit record high in August

    The increase was mainly due to a revaluation process that increased reserves by about $4.243 billion, the Bank of Israel reported. Israel’s foreign exchange reserves at the end of August 2024 reached an all-time high of $217.377 billion, an increase of $3.743 billion over their level at the end of…

  • Israel’s average monthly wage still rising

    According to the Central Bureau of Statistics report, the average wage in Israel was NIS 13,683 in July 2024, an increase of 6.7% over July 2023. In July 2024, the average wage in Israel was NIS 13,683, up 6.7% from July 2023, according to the Central Bureau of Statistics. The…

  • Israel’s main labour union calls strike as pressure mounts for hostage deal By Reuters

    By Emily Rose and Stephen Sher JERUSALEM (Reuters) – The head of Israel’s largest labor union called for a general strike on Monday to pressure Prime Minister Benjamin Netanyahu’s government to return Israeli hostages still being held by Hamas in Gaza, as thousands of protesters took to the streets. The…

  • JPMorgan cuts Israel’s 2024 growth forecast

    Following recent negative macroeconomic data, JPMorgan has lowered its forecast for Israel’s GDP growth in 2024 to just 1.4%, down from 1.6% in its previous forecast. Under the title “Israel: An Unlucky Mix of Growth and Inflation Data,” US investment bank JP Morgan released revised forecasts for the Israeli economy,…