The Organization for Economic Cooperation and Development (OECD) has released a new forecast for Israel’s economic growth rate, indicating a projected increase of 1.9% in 2024 and 4.6% in 2025. While these numbers are promising, they also indicate a decrease in GDP per capita. This forecast aligns closely with predictions from the Bank of Israel and the International Monetary Fund (IMF), but is more pessimistic compared to estimates from the Bank of Israel and the IMF for 2025.
In addition to economic growth, the OECD has also made projections regarding inflation and interest rates. They predict an inflation rate of 2.5% at the end of 2024, which is higher than last year’s rate of 1.3%. However, this forecast includes a discount rate of 3.75%, representing a decrease of 0.75%. Despite these projections, the OECD believes that the government will be able to maintain the state budget deficit within established limits of 6.6%.
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Overall, while there are challenges ahead for Israel’s economy, with the right strategies and measures in place, optimism remains that the country can navigate through these uncertainties successfully.
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