IMF cuts Israel's 2026 growth forecast to 3.5% from 4.8%, citing Middle East tensions and labor shortages from reservist call-ups. Inflation expected to rise short-term on supply constraints and energy prices.
The International Monetary Fund has lowered its forecast for Israel's economic growth in 2026 to 3.5 percent, down from its previous 4.8 percent estimate, citing rising Middle East tensions, ongoing fighting, labor shortages from reservist duty, and supply constraints.
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