Economic Analyst Sabar Flowsker Highlights Israel's Growth and Inflation Control Under Smotrich

Economic commentator Sabar Flowsker presented a notably positive overview of Israel's economy during Minister Bezalel Smotrich's tenure. He emphasized that inflation has been effectively controlled, with the consumer price index rising only 1.5% from July 2025 to July 2026. Prices of fruits and vegetables increased by just 0.5% over the year and even declined by 0.7% since early 2026, while housing prices fell nearly 1.5%.

Flowsker also cited data from the Central Bureau of Statistics showing robust economic growth: Israel's economy expanded by 7.2% from Q2 2025 to Q2 2026, GDP per capita rose 5.8%, private consumption per capita increased 5.1%, and productive investments surged 14%. Average wages grew by 7.7%, with real wages up 6%, marking a significant rise that outpaced living costs.

Regarding fiscal policy, the government budget deficit shrank to 3.3% of GDP, one of the lowest among OECD countries. Flowsker attributed this fiscal improvement not to heavier taxation or austerity but to increased revenues from capital gains taxes, particularly from the capital markets, high-tech sector, and banking. Unemployment remained negligible.

Politically, Flowsker warned the opposition against focusing on economic criticism, stating that the improved living standards despite ongoing conflicts make it unlikely that economic issues will topple the coalition in the upcoming October Knesset elections. He concluded that unless an unexpected crisis arises, the economy will not be a decisive factor in the electoral outcome. This assessment is significant for Smotrich, as even a critical analyst acknowledges the government's economic achievements under his leadership.