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Panorama econòmic

Economic indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

The Israeli economy has recorded one of the best performances of the OECD countries in recent years, mainly due to an increase in the working-age population and the participation rate. However, after reaching 3.4% of GDP in 2019, growth was abruptly halted and turned negative in 2020 (-2.2%) due to the outbreak of the Covid-19 pandemic. According to IMF estimates, GDP growth picked up to 7.1% in 2021, supported by relaxed restrictions measures and robust exports. Economic growth should remain vigorous in 2022 (4.1% of GDP) and 2023 (3.6%) (IMF), supported by a recovery in tourism, improved economic ties with Gulf neighbours and a booming technology industry (Focus Economics). In the long term, the increase in the proportion of low-skilled Har (ultra-Orthodox Haredim) and Israeli Arab communities and of the working population (expected to fall from 25% to 40% by 2045) are potential obstacles to growth.

In 2021, Israel’s economy rebounded strongly despite the forth wave of the COVID-19 pandemic. In response to the new surge in infections, the government tightened some restrictions on gatherings and launched a booster vaccination campaign in August. In the light of the recovery, policy support such as certain unemployment benefits and grants to hard-hit businesses were withdrawn (OECD). The economic crisis caused by the Covid-19 pandemic had a major impact on the country's fiscal situation. According to the IMF estimates, the budget deficit reached -9.8% GDP in 2020, and remained high in 2021 (-6.3% GDP). It is expected to decrease to -4% GDP in 2022 and -3.6% GDP in 2023. Similarly, public debt increased sharply since the pandemic, reaching 73.2% GDP in 2021, and is forecast to remain at this level in 2022 (73.2%) and 2023 (73.1%). After turning negative in 2020 (-0.6%), inflation increased in 2021 due to rising energy, food and housing expenditure prices (OECD). Estimated at 1.4% in 2021, it is expected to reach 1.8% in 2022 and 1.6% in 2023, within the central bank’s target range (IMF). In August 2021, the government adopted an ambitious reform programme aimed at boosting infrastructure investment, reforming the vocational system and improving business environment, in order to increase productivity to support a sustainable growth (OECD). Investing in pre-school education to improve skills and make growth more inclusive (OECD) and ensuring the social and economic integration of Arab and Haredim minorities (IMF) are some of the challenges faced by the country.

Israel has one of the highest living standards in the region. The average salary in Israel is similar to average salaries in Europe. However, 25% of Israelis live in poverty and inequality is relatively high, which explains the frequent social protests. Furthermore, households suffer from high real estate prices and costs of living. The unemployment rate has risen due to the global crisis caused by the Covid-19 pandemic and will reach 5.1% in 2021. According to IMF estimates, the unemployment rate will decrease to 4.6% in 2022 and 4.3% in 2023.

 
GDP Indicators 201920202021 (e)2022 (e)2023 (e)
GDP (billions USD) 397.94407.10e467.53501.41529.32
GDP (constant prices, annual % change) 3.8-2.2e7.14.13.6
GDP per capita (USD) 43,966e44,181e49,84052,50454,445
General government balance (in % of GDP) -4.1-9.8e-6.3-4.0-3.6
General government gross debt (in % of GDP) 59.572.0e73.273.273.1
Inflation rate (%) 0.8-0.6e1.53.52.0
Unemployment rate (% of the labor force) 3.84.3e5.14.64.3
Current Account (billions USD) 13.3322.1420.8419.1418.89
Current account (in % of GDP) 3.45.44.53.83.6

Font: IMF – World Economic Outlook Database, 2016

Note: (e) Estimated data

 
Monetary indicators 20162017201820192020
Israeli New Sheqel. (ILS) - Average annual exchange rate for 1 EUR 4.094.074.244.043.93

Font: World Bank, 2015

 

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Actualitzacions: September 2022

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