The International Monetary Fund this week raised its 2026 growth forecast for Israel from 3.5 per cent in April to 4.5 per cent, upping its prediction by a full percentage point.
The Bank of Israel’s forecast for 2026 was 5.5 per cent.
The IMF Global Economic Outlook report, which appeared on Tuesday, kept the Israel forecast for 2027 at 4.4 per cent, unchanged since April.
Globally, the IMF report predicted 3.1 per cent growth, with 4 per cent in China and 7 per cent in India.
This growth was bucked by slower growth in Germany, expected to reach 1.3 per cent this year. Spain’s GDP growth will remain strong at 2.5 per cent, according to the forecast.
France’s economy was projected to grow by 0.4 per cent this year, sharply below the 0.9 per cent growth of 2025, with unemployment rising to 8.4 per cent from last year’s 7.7 per cent.
For the UK, the IMF forecasted 1.3 per cent growth in GDP, up 0.3 percentage points from the last forecast.
To get more Israel news, click here to sign up for our free Israel Briefing newsletter.