Bank of Israel sees 4.5% negative growth in 2020

Bank of Israel Governor Prof. Amir Yaron has presented two scenarios for negative growth in the Israel economy during 2020 during discussions about the economy chaired by Prime Minister Benjamin Netanyahu. According to Yaron, if the rate of Covid-19 infection does not worsen, and no more restrictions are imposed on the economy, then negative growth will be 4.5% in 2020. But if the infection rate worsens and there is a lockdown during the fourth quarter of 2020, then negative growth would be 7%.

This is an improvement on the Bank of Israel's forecast last month, which saw negative growth of 6% if the infection rate does not worsen and 9% if new restrictions are imposed.

The Bank of Israel's forecast also sounds a lot more optimistic after the publication earlier this week of the initial assessment for the second quarter of 28.7% negative growth and 10.1% negative growth in the first half of 2020. Despite these dire figures, negative growth in the second quarter was not as bad as the Bank of Israel expected, thus the growth figures have now been revised to the good.

Bank of Israel sees 4.5% negative growth in 2020

The Bank of Israel has improved its forecast for the Israeli economy but says the contraction will be 7% if another lockdown is imposed.