Macro - Country Economic Forecasts - Israel

Macro - Country Economic Forecasts - Israel

As the war with Gaza drags on economic activity, we've downgraded our GDP growth forecasts for Israel to 1.9% from 2.9% for 2023 and 2.2% from 3.1% for 2024. We expect the war to last throughout this year and to be contained to Israel and Gaza. The fall in GDP growth will stem from three main factors: weaker private consumption, a sharp and prolonged contraction in the tourism sector, and lower fixed investment. But downside risks are growing that the conflict will spill over into next year, making a protracted war scenario increasingly probable.