The small pick-up in Israeli GDP growth to 3.0% q/q annualised in Q2 shows that the economy is holding up better than we and most other had thought this year. And we think that growth will remain solid over the rest of the year (annual GDP growth of 3.3% in 2023). There are risks to the outlook, including from the government’s controversial judicial reforms, but at this point we think the impact will remain limited.
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