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Israel GDP (Q1 2023)

GDP growth remained fairly solid in Israel in Q1 (2.5% q/q annualised) as it came in slightly above expectations thanks to an unexpected surge in business investment. We think growth will come in below potential this year, but the economy is likely to avoid recession. Meanwhile, red-hot inflation figures for April released yesterday all but confirm that another interest rate hike is on the cards at next week's meeting.

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