IMF cuts Israel's 2026 growth forecast to 3.5%
Israel · 8 weeks ago
On 1 July 2026 the IMF Executive Board concluded the 2026 Article IV consultation with Israel, cutting its 2026 growth forecast to 3.5% from 4.8% before the war.
The revision reflects a sharp first-quarter contraction followed by a modest rebound across the rest of the year. Factors cited include continuing hostilities, defence spending expected to stay high, and labour supply constrained by military mobilisation and reduced availability of non-Israeli workers.
The Fund expects inflation to rise temporarily on higher energy prices and supply constraints, despite shekel appreciation.
Source: International Monetary Fund — imf.org