IMF Raises Israel's Economic Growth Forecast to 4.5% for 2026
Translated & summarized from Mignews by baba
The International Monetary Fund has raised Israel's economic growth forecast for 2026 to 4.5%, an increase of one percentage point from its previous estimate. The IMF also lowered its inflation forecast for the country to 1.8% for 2026. The unemployment rate is expected to stay at approximately 3%, with the current account surplus projected to fall to 1.1% of GDP.
The story in 5 lines · by baba
- The IMF raised Israel's 2026 economic growth forecast to 4.5%, up from 3.5%.
- The IMF lowered Israel's 2026 inflation forecast to 1.8%, down from 2.3%.
- The unemployment rate in Israel is expected to remain stable at around 3%.
- The current account surplus is projected to decrease to 1.1% of GDP.
- The IMF's forecast for 2027 growth remains at 4.4%.
The International Monetary Fund (IMF) has revised its economic growth forecast for Israel for 2026, projecting a 4.5% increase, up from the 3.5% estimated in its April report. This upward revision of a full percentage point is notable given a general regional slowdown. The IMF's forecast for 2027 remains at 4.4%.
These projections are slightly lower than those from the Bank of Israel's research division, which anticipates 4% growth this year and 5.5% next year. The IMF noted that some of the expected economic expansion is effectively shifting from 2027 to the current period.
Furthermore, the IMF has lowered its inflation forecast for Israel in 2026 to 1.8%, down from 2.3% in April. This decrease is considered unusual amidst global inflationary pressures driven by high oil and energy prices, stemming from the situation around the Strait of Hormuz. The IMF estimates that inflationary pressures have impacted the Israeli economy less than previously anticipated.
The unemployment rate is expected to remain stable at around 3%, while the current account surplus is projected to decrease to 1.1% of GDP.
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