Israel’s economy surges

Israel’s economic recovery surged amid its war on Gaza, with GDP rising by 14.1 per cent in Q1, slightly below expectations, Bloomberg reported.

Shekel weakened due to increased government spending, depreciating by over 4 per cent since March. Despite war strain, consumer confidence rises, labour market stabilises. Economic momentum depends on war progression.

S&P forecasts 0.5 per cent growth if Israel continues its aggression on Gaza, while the Bank of Israel and Finance Ministry offer higher estimates. Furthermore, Bank Hapoalim notes that Israel’s Purchasing Managers’ Index shifted back into expansion territory from contraction in March, pointing to an improvement in domestic orders and production, albeit amid struggles in exports.