Volatility Can Be an Opportunity, Citi Says in Israel Market Outlook
The article argues that volatility, not stability, is the starting point for today’s global markets, where investors, companies and financial institutions are dealing with changing interest rates, currency swings and constant technological change. The real challenge, it says, is managing uncertainty effectively over time while staying focused on results.
In Israel, that volatility is especially visible. Economic activity fell in the most recent quarter, partly because of the security situation, but Bank of Israel now forecasts 2026 growth of about 3.8% and has cut the interest rate to 3.75%. The piece describes this as an economy marked by uncertainty but also by signs of adjustment and stabilization.
The local tech sector has also been under pressure, with companies shifting from rapid growth to a sharper focus on profitability and efficiency amid AI and currency changes. The article says this is a necessary shift globally and in Israel, helping build stronger and more durable businesses. Despite a temporary slowdown, Israeli high-tech is said to have shown an ability to adapt quickly and return to growth.
Citi says its role in this environment is changing too, from a global financial institution to a strategic partner that keeps capital and activity moving across markets. The bank says it works with Israeli companies, banks and institutional investors, connecting Tel Aviv with financial centers worldwide and foreign investment from the United States and other countries. It says that commitment has lasted 25 years and has been tested especially after the recent wars.
The article also highlights AI as a structural force reshaping capital markets. Citi says it is investing billions of dollars in technology and deploying AI across dozens of core workflows, from automated code reviews to risk analysis and capital allocation. Neill Corney, who leads Citi’s business in Israel, is identified as the author of this view, and the bank says its expanded presence in Israel supports its digital transformation strategy, including work in digital assets, AI, blockchain and data.
