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The IMF’s initial report is attached to this notice.
The annual visit by the International Monetary Fund (IMF) delegation, led by Mr. Kotaro Ishi, submitted its initial report to the Minister of Finance and the Governor of the Bank of Israel, after completing its meetings in Israel. The IMF is expected to publish its final annual report on the Israeli economy in the near future.
The Ministry of Finance and the Bank of Israel thank the IMF delegation and appreciate their intensive work.
The delegation was impressed by the Israeli economy’s resilience, as reflected by the recovery of economic activity following the ceasefire. In its initial report, the delegation also noted the impact of the war, which, in their view, joins the existing structural challenges in the Israeli economy, such as low labor force participation among certain population groups. The report also contains recommendations for future fiscal and monetary policy paths.
Finance Minister Bezalel Smotrich said: “We thank the IMF delegation for the important continued dialogue between us and for their intensive work. The IMF forecasts and the notice it published today reflect the strength of the economy and the fruits of the responsible fiscal and monetary policies we have led in the past three years. As reflected in the State budget that is currently being debated in the Knesset, we will continue to lead with fiscal responsibility, maintain stability, and promote courageous reforms that will encourage employment, growth, and competition.”
Bank of Israel Governor Prof. Amir Yaron said: “I thank the IMF delegation for their thorough and professional work and for the joint and fruitful discussions with them. The report shows the resilience and strength that the economy has demonstrated in the past two challenging years, since the war broke out on October 7, 2023. We will study the final report in depth once it is published, including all of its important recommendations.”
Credit: Bank Of Israel