Capital Market

Israeli government tabled the largest state budget in the country's history, totaling 582 billion shekels, before the Knesset, 21 days after its initial approval. This budget marks a significant increase of 68 billion shekels compared to the earlier 2024 budget set in May 2023. Notably, it includes substantial cuts across all government ministries except for defense and yeshiva budgets

Inflation in Israel has remained stable in January, with the Consumer Price Index (CPI) holding steady, according to the latest report from the Central Bureau of Statistics (CBS). This stability has led to an annual inflation rate of 2.6%, marking the lowest level since November 2021

In the first quarter of 2024, Israeli start-up companies raised an amount of approximately $1.6 billion, within 105 fundraising rounds, according to new data from the high-tech report "Tech Review" compiled by Leumitech, the high-tech banking arm of Bank Leumi, and the research company IVC. The total amount of the recruitment is an increase of about 10% compared to the previous quarter. However, compared to the corresponding quarter last year, the total amount raised in the first quarter of this year is approximately 10% lower than that of 2023. \

Concerns are mounting within Israel's Ministry of Finance as the country grapples with a rapidly escalating budget deficit, prompting discussions about the necessity of emergency measures to address the alarming financial situation. Senior officials, including heads of the Bank of Israel and prominent figures in the economy, express surprise and deep apprehension at the unprecedented figures

Finance Minister Bezalel Smotrich announced a bold move this evening, declaring a 100% tariff on all products imported from Turkey until the end of Recep Tayyip Erdogan's term as President of Turkey. This decision comes as a direct response to Erdogan's recent decision to halt trade with Israel, citing Israel's actions in Gaza and accusing it of war crimes

In the wake of Turkey's boycott announcement against Israel and heightened tensions globally, the Ministry of Economy and Industry has published a comprehensive review detailing the state of the Israeli economy amidst the ongoing Iron Swords War. The report highlights the vulnerability of Israel's domestic product to global supply chain disruptions, particularly in sectors like manufacturing, notably the electronics industry

A big surprise with the publication of the consumer price index: the index for the month of May rose by only 0.2%, just like in May last year, and below the forecasts of the analysts who expected it to be between 0.5% and 0.7%. Because of this, the annual inflation rate remains at 2.8%, and still meets the target set by the government (1%-3%)

Solaredge, a prominent Israeli renewable energy firm, has announced a significant workforce reduction, affecting 400 employees, half of them based in Israel. This move constitutes approximately 8.5% of Solaredge's total workforce, currently numbering around 4,700 employees

Rating agency S&P Global has issued an unusual statement highlighting the increased risk posed by the escalating conflict in the Middle East. The agency warns that the potential for regional escalation presents a significant threat to Israel's security, economy, and social stability

The economic emergency plan formulated by senior officials of the Ministry of Finance, as a temporary substitute for the failure to prepare an orderly state budget for 2025, does not include tax increases and the main point will be an almost complete freeze on updating payments to citizens, even though the rise in inflation this year is expected to be higher than 3% this year