Capital Market

The chief economist at the Ministry of Finance predicts that 2022 will end with a revenue surplus of NIS 70 billion compared to the projected revenues when preparing the state budget. According to the latest macroeconomic forecast of the Chief Economist, all revenues in 2022 will amount to NIS 456.6 billion, compared to a forecast of revenues of only NIS 387 billion when preparing the state budget. This surplus, mainly due to an increase in tax revenues, led to a significant reduction in the deficit, which in May reached almost 0% relative to GDP. The surplus revenue is what has allowed...

The consumer price index rose in June, according to forecasts, by 0.4%. The rise in the index in June accelerates the rate of inflation in Israel and it now reached 4.4% - a record since March 2011. The most significant price increases were recorded in transportation items, which increased by 2.4%, housing, which increased by 0.7%, culture and entertainment, which increased by 0.7%, and health, which increased by 0.6%. On the other hand, due to seasonality, there were significant price decreases in the vegetable and fruit sections, which decreased by 8.5% and clothing and footwear, which...

The unemployment rate in Israel is still very low, but at the same time, the volume of layoffs in high-tech is beginning to affect the numbers of high-tech workers looking for work. According to data released today (Monday) by the Central Bureau of Statistics (CBS), there has been a slight decline in the unemployment rate in the past month, from 3.5% in May to 3.4% in June, which is 146.5 thousand unemployed - a very low figure in Israel. In May there were 150.6 thousand unemployed, which is 3.5% by international definition. At the same time, the employment service today released new data...

A review by the chief economist at the Ministry of Finance indicates that in Israel, the corona crisis did not lead to a wave of resignations and a mass exit from the labor market. According to the review, as of June 2022, the employment and participation rates in Israel have somewhat exceeded their pre-crisis level. The employment rate of those aged 15 and over in June 2022 was 61%, 0.1 percentage point higher than before the crisis, and the participation rate (63.4%) exceeded its pre-crisis level by half a percentage point. Nominally, the number of participants in the labor market in June...

In August, a budget deficit of about one billion shekels was measured, but the accumulated budget surplus in the last 12 months remained at 0.6% of GDP. Everything emerges from data published today (Thursday) by the Accountant General of the Ministry of Finance, CPA Yali Rotenberg. The cumulative surplus since the beginning of the year has dropped to the amount of NIS 34.4 billion - still unprecedented since the state has never had a situation where after eight months there is a surplus of funds in the state budget. What's more, the surplus is about 8% of the annual state budget

While inflation slowed slightly in August and the consumer price index fell by a higher rate than expected - 0.3% - the housing market is heating up and apartment prices continue to soar. Despite the moderation in the mortgage market and the drop in the number of apartments sold, in the months of June-July, the price of apartments increased by 1.3%, thus registering an annual increase of 17.9% - the highest jump since 2010

About three weeks ago, another round of locked-in profits ended, which resulted in tax revenues of NIS 2.9 billion, contrary to the forecast given at the end of 2021, which was only about NIS 1 billion. The operation was designed to deal with the problem created by the early version of the Capital Investments Encouragement Law, which resulted in companies locking up profits and not distributing them in order to avoid paying taxes

The struggle of the Lahavim plant in Galilee, which Pratt & Whitney wants to close and lay off 900 workers, is intensifying. The parent company wishes to transfer the activity of the distributor to the United States. The storm of layoffs and the closing of the plant in the north reached the finance committee in the Knesset: Martin Beaulieu, the vice president for operations strategy at the American company claimed that they did not find a buyer and that the plant lost 700 million dollars and will continue to lose until the closure. The Histadrut representative rebuffed him: "They want to...

Israel is in 4th place on the "Economist" list of successful economies in 2022 In weighing the indicators of growth, inflation, stock performance, and government debt, Israel leads the list of the 34 richest countries, alongside other surprising winners - Greece, Portugal and Ireland. Germany, despite its political stability, was ranked particularly low. In financial terms, the past year has been bad for almost everyone. Inflation of 10% in the rich world has eaten away at household incomes. Investors lost a lot when stock markets fell by an average of 20%. However, focusing on the...

Israeli exports are expected to break a record this year and cross a threshold of 160 billion dollars - according to a forecast published by the Ministry of Economy. If the forecasts come true, the rate of increase in exports will be higher than 10% compared to 2021, which also recorded a record in Israeli exports. The Ministry of Economy says that the forecast for Israeli exports of $160 billion is conservative and that if the rate of growth in exports in the fourth quarter of this year is similar to the growth in exports in the first three quarters of 2022, it is possible that the volume...