Israel Economic Activity March 2022

The Bank of Israel’s Composite State of the Economy Index expanded 0.19% month-on-month in seasonally-adjusted terms in March (February: +0.10% mom). March’s reading was driven by stronger imports of manufacturing inputs in the month, as well as healthier services revenue, retail trade revenue and industrial production in February, as the impact of the pandemic subsided. The index is calculated using the latest available data and hence uses a combination of figures from recent months to provide a comprehensive picture of the economy’s performance.

On an annual basis, economic activity grew 2.9% in March, down from February’s 3.1% expansion. Data from the index for Q1 as a whole suggests a moderate GDP outturn in the period, in part due to a tough base effect following booming GDP in Q4.

FocusEconomics analysts estimate the economy expanding 5.1% in 2022, up 0.2 percentage points from last month’s forecast, before growing 3.7% in 2023.