Deutsche Bank, one of the largest banks in Europe, published a new review of the Israeli economy, significantly worsening its previous forecast.
According to the new forecast, in 2024 the country’s GDP growth was 0.5% instead of 1.5%, and in 2025 – 3.8% instead of 4.2%.
The state budget deficit in 2024 will be 7.2% instead of 6.6% of GDP, and in 2025 – 4.9% instead of 4% of GDP.
According to the new forecast, Israel will end 2024 with inflation of 3.8% instead of the predicted 3%. At the same time, the inflation forecast for 2025 remained the same – 2.8%.
Deutsche Bank analysts believe that the Bank of Israel will not reduce the discount rate before the fall of 2025 (the previous forecast spoke of the summer of 2025), but are confident that there will be no additional rate increase, since the central bank has enough other means to prevent a sharp weakening of the shekel .