Israeli economic activity, May 2022

The Bank of Israel Composite Economic Health Index fell 0.03% on a seasonally adjusted basis in May, contrasting with a 0.15% gain in April. May results marked the sharpest drop since December 2021.

The fall in May was associated with a decline in industrial production in April and a decline in imports of consumer goods in May. In contrast, strong service and retail revenue growth in April supported the overall performance. The index is calculated using the latest data available and therefore uses a combination of numbers from recent months to give a complete picture of the performance of the economy.

On an annual basis, economic activity grew at a more moderate pace of 2.1% in May (April: +2.3% y/y), the worst performance since March 2021.

Analysts at FocusEconomics estimate the economy will grow 4.9% in 2022, 0.2 percentage points below last month’s forecast, and then grow by 3.5% in 2023.