Israel: 2026 Article IV Consultation-Press Release; Staff Report; and Statement by the Alternate Executive Director for Israel

International Monetary Fund

No 2026/161, IMF Staff Country Reports from International Monetary Fund

Abstract: Elevated regional tensions have tested Israel’s economic resilience. Amid ongoing hostilities in the Middle East, defense expenditure is expected to remain high, and labor supply constrained by military mobilization and reduced availability of non-Israeli workers. These pressures would compound longstanding structural challenges—such as persistently low labor-market participation among certain groups—and weigh on Israel’s medium-term economic outlook.

Pages: 77
Date: 2026-07-01
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