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Israel’s vaccine success to drive strong recovery

Israel has been the world leader in the vaccination race and the early evidence is that the rapid re-opening of the economy has driven a strong rebound in activity, particularly in services sectors. While the recovery is set to be stronger than the consensus expects this year and next, inflation will remain firmly below the central bank’s target. Interest rate hikes are a distant prospect, but this won’t prevent further appreciation of the shekel over the coming years.

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