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Country Economic Forecasts > Israel

  • July 2017
  • 8 pages
  • Oxford Economics
Report ID: 1907579

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With CPI inflation turning negative again in June (at -0.2% y/y) due to the strong shekel and cuts in water, fuel and after-school childcare prices, we have pushed back the first central bank policy hike to early-2018. But GDP is still expected to grow robustly this year, despite some base effects from demand spikes in 2016. Expansionary policies and a labour market near full employment underpin our forecast of 3.5% growth in 2017, but our lower interest rate path has led to a slight downward revision to growth in 2018, now seen at 3.7%.

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