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Israel’s recovery entering a more challenging phase

Israel’s economy has been one of the fastest growing globally since the pandemic but there are a number of headwinds that will weigh on activity over the coming quarters. We expect a period of below-potential growth out to 2024. The likely victory for Benjamin Netanyahu in this week’s election is not a game-changer for the economy in the near term, but could pave the way for much-needed supply-side reforms.

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