This 2023 Article IV Consultation discusses that Israel's impressive economic performance continued in 2022. Economic activity is expected to decelerate in 2023, and thereafter converge toward its potential. IMF staff projects economic growth to slow to about 2.5 percent in 2023, as households'...

High employment growth has sustained Israel’s high GDP growth in recent decades, but demographic change and labour market duality put future growth at risk. Policy action is required to stimulate employment and raise labour productivity, especially among population groups with weaker labour...