After the economic decline in 2020, Israel’s Finance Ministry has revised their forecasted GDP growth rate from 5.5% to 7.1% for 2021. In 2022, the forecast remains at 4.7%. While the economy bounces back after coronavirus, the Ministry of Finance confirms that the decline of last year will be offset this year.
They have found that tourism and private consumption have both resumed with rising rates, which has supported the increase. In addition, the Treasury has implemented a new methodology from the Central Bureau of Statistics which favors the growth by moderating the product price increase.
Due to many operational disruptions, the inflation rate for 2021 has gone up from 1% to 1.5%, and for 2022 has been forecasted to increase from 0.5% to 2.1%.