Capital Market

Global banking powerhouse J.P. Morgan published two optimistic reports on Friday — one on Israel’s inflation outlook and another on its macroeconomic recovery — forecasting that Israel’s real GDP growth could reach as high as 11% in the third quarter of 2025, marking one of the strongest rebounds in recent years. While the bank’s official forecast predicts growth at a more conservative 7.5%, analysts note that “a positive surprise is likely,” as the economy rebounds rapidly from the disruptions earlier in the year

The Ministry of Finance on Tuesday published a draft order to double the tax exemption threshold on personal imports—from $75 to $150—a change expected to take effect within at least 21 days. According to the Tax Authority, the reform is projected to reduce state revenues by approximately NIS 1 billion per year

Israel’s government posted an unexpected improvement in its fiscal position: the 12-month deficit through November fell to 4.5% of GDP, a drop of 0.4 percentage points compared to the level recorded in October. The update comes as the government simultaneously approved an increase in the 2025 deficit ceiling to 5.2%, reflecting broader fiscal pressures

Around the world, nations bade farewell to 2025 and ushered in 2026 with fireworks, music, and the traditional midnight kiss—alongside widespread hopes for peace after another year marked by war and instability. Yet in many countries, celebrations unfolded under heavy security, and in Syria those fears materialized when a suicide attack killed a police officer during New Year’s festivities in Aleppo

An interest rate decision day is typically one of the most demanding on the Governor of the Bank of Israel, marked by hours of deliberations, drafting statements, a lengthy press conference and a round of media interviews late into the evening. This time, however, the day ended on a notably calmer note

Israel’s housing price index rose an unexpected 0.7% in October–November, ending eight consecutive months of decline, according to data released by the Israel Central Bureau of Statistics (CBS). On an annual basis, however, price growth remained muted. From November 2024 to November 2025, the housing price index edged up just 0.1%, underscoring continued weakness in the broader market

The State Commission of Inquiry into the Submarine Affair, headed by former Supreme Court President Asher Grunis, published its interim findings on Sunday, identifying deep systemic deficiencies in Israel’s defense procurement and security decision-making processes

The Knesset approved the 2026 state budget on its first reading late Wednesday night, with 62 lawmakers voting in favor and 55 against. Shas and Degel Hatorah supported the proposal, while Agudat Yisrael opposed it. Shas Chairman Aryeh Deri was absent from the vote

The government’s economic policy had produced “great” results. Still, new data published by the National Insurance Institute (NII) paints a more troubling picture. Poverty in Israel rose in 2024, particularly among children, and preliminary estimates indicate a further deterioration in 2025. Inequality also increased for the first time in four years

Moody’s Investors Service announced over the weekend that it has revised Israel’s credit rating outlook from “negative” to “stable,” while leaving the sovereign rating unchanged at Baa1. The move reflects a reduced risk of further near-term deterioration rather than renewed confidence in the government’s economic or fiscal policy