Israel economy to grow 4.9 per cent in 2022

Israel’s economic growth is expected to slow to 4.9 per cent in 2022 after an 8.2 per cent spurt last year, the Finance Ministry said on Thursday.

It expects higher inflation and rising interest rates to slow growth to 3.5 per cent in 2023.

The ministry forecast an inflation rate of 4.2 per cent in 2022 and 3 per cent next year.

Israel’s inflation rate hit 4.1 per cent in May — above an official target of 1-3 per cent — and the Bank of Israel has raised rates by more than one percentage point since April to contain price pressures.