(Jun. 4, 2026 \/ JNS)\n <\/p>\n
The OECD expects Israel\u2019s war-hit economy to grow 3.3% in 2026 and accelerate to 5.6% in 2027, but warns that conflict risks and a swelling deficit could undermine the recovery.<\/p>\n
Activity is rebounding after the March\u2013April fighting with Iran and Hezbollah, with growth in the Jewish state projected to be roughly double the global rate next year, the Paris-based Organisation for Economic Co-operation and Development said in a report on Wednesday.<\/p>\n
Before \u201cOperation Roaring Lion,\u201d output was buoyed by private-sector momentum, including an 11% annualized jump in industrial production over the three months through January and a 9.2% rise in credit card purchases in February, while unemployment fell to 2.6%.<\/p>\n
The OECD<\/a> said reconstruction and a restart of the construction sector from mid-March, along with pent-up housing demand, will support the recovery, with private consumption forecast to surge 6.8% in 2027 even as service exports recover more slowly.<\/p>\n The group cautioned that renewed high-intensity fighting or a sharp correction in global artificial-intelligence-related markets could weigh on growth, while deeper regional integration and new trade deals could boost the outlook.<\/p>\n On the fiscal side, it projects the budget deficit will widen to 5.3% of gross domestic product in 2026 before narrowing to 4.2% in 2027, pushing the debt ratio up to 71% next year from about 60% in 2022, even with planned VAT and income-tax hikes contained in the 2025 state budget.<\/p>\n Annual inflation stood at 1.9% in April, and the OECD expects price growth to stay contained at 2.3% in 2026 and 2.1% in 2027, helped by domestic natural gas output and resilient financial markets that have seen record stock prices and a stronger shekel, giving the Bank of Israel<\/a> room to cut its benchmark interest rate toward 3.5%, from the current 3.75%, over the coming year.<\/p>\n","protected":false},"excerpt":{"rendered":"(Jun. 4, 2026 \/ JNS) The OECD expects Israel\u2019s war-hit economy to grow 3.3% in 2026 and accelerate…\n","protected":false},"author":2,"featured_media":475495,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[42,43,40,38,41,39],"class_list":["post-475494","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-headlines","tag-news","tag-top-news","tag-top-stories","tag-topnews","tag-topstories"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/475494","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=475494"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/475494\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/475495"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=475494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=475494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=475494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}