A recent report by the International Monetary Fund (IMF) finds that the Israeli economy is expected to recover rapidly, despite the corona crisis. Entering COVID-19 circumstances from a place of strength support the idea that stability will return come 2021, despite the high levels of uncertainty emanating daily. Due to the quick action of the central Israeli bank, financial stability and availability of credit remained on par. The IMF report stems from analysis from the Finance Ministry, Bank of Israel, and other senior officials within the Israeli economy.
The report stresses that Israeli authorities should continue to focus on containing risks, nurturing the labor market, and setting a 2021 budget as soon as possible. While the report states that Israel had been less hard-hit than other major economies, the IMF acknowledges that corona times remain unpredictable.
The IMF estimates that the Israeli economy will shrink by 5.9% at most, and will likely be less. The 2021 growth forecast was estimated at only 4.9%.
