Key facts
- The IMF has lowered Israel's economic growth forecast for 2026.
- The new forecast for 2026 growth is 3.5%.
- The previous forecast for 2026 growth was 4.8%.
- The reduction is due to elevated regional geopolitical uncertainty.
- The IMF anticipates a temporary rise in inflation.
- Higher energy prices are expected to contribute to inflation.
- Supply constraints are also expected to contribute to inflation.
The International Monetary Fund (IMF) has revised its economic growth forecast for Israel for the year 2026. The new projection stands at 3.5%, a decrease from the previously anticipated 4.8%. This adjustment is primarily due to elevated regional geopolitical uncertainty, which the IMF identifies as a significant factor impacting the economic outlook. In addition to the growth forecast revision, the IMF also anticipates a temporary rise in Israel's inflation rate. This anticipated inflation increase is linked to expected higher energy prices and ongoing supply constraints. The IMF's assessment underscores the interconnectedness of regional stability and economic performance, particularly for Israel in the current geopolitical climate.