Israeli Economy Shows Resilience as Credit Card Sales Surge Amidst War Challenges

In a surprising turn of events, Israel's economy witnessed a notable recovery in the third month of the ongoing conflict, with a discernible uptick in credit card sales, according to data from Sheba, the manager of the national credit card payment system.

Key Highlights:

1. Credit Card Spending on the Rise: December 2023 marked a significant shift in business activity, with a 4.56% increase in Israeli public spending on credit cards compared to the same period in 2022. The annual perspective reveals a robust 5.22% surge in credit card spending, reaching over NIS 465.987 billion.

2. Online Transactions Surge: Spending on online transactions within Israel soared by 5.1%, reaching NIS 267.406 billion in 2023. Despite a slight dip of 1.2% in daily online purchases from November 2023, December showcased a 3.4% increase in online transactions compared to the previous year.

3. Physical Transactions Thrive: Physical transactions in Israeli businesses experienced a notable 6.1% increase in volume compared to December 2022, totaling NIS 17.251 billion. The Hanukkah holiday in December contributed to a 6.4% rise in average daily expenses compared to November 2023.

4. Cash Withdrawals Decline: A noteworthy decline of 5.67% was recorded in the volume of cash withdrawals from bank ATMs, dropping from NIS 5.361 billion in December 2022 to NIS 5.056 billion in 2023. The entire year of 2023 marked a 1.2% decrease in cash withdrawals, totaling NIS 63.647 billion.

5. Economic Activity Bounces Back: Tali Hollenberg, the vice president of Sheba, noted that during December, the Israeli economy showed signs of returning to almost full activity in most areas. The withdrawal of IDF forces, the return of reserve forces to work, and students to educational institutions contributed positively to economic activity.

Despite challenges in certain regions such as the envelope, the Lebanese border, and Eilat, which continue to grapple with post-war recovery, the overall sentiment is one of resilience and adaptability in the face of ongoing geopolitical tensions.