The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
Israel's economy is growing well with inflation remaining low and the housing market cooling. Growth of about 31/2 percent in 2017 helped bring unemployment below four percent in early 2018, supporting robust wage rises averaging 31/4 percent. Yet, partly owing to the appreciation of the shekel, inflation remained below the
1-3 percent target range. House price increases slowed to below two percent as proposed tax measures deterred investor interest. Prospects for the next few years are for growth to remain around 31/2 percent with inflation rising gradually.