The following is a summary of developments in nonfinancial private sector debt in the first quarter of 2025:
- In the first quarter of 2025, the balance of nonfinancial private sector debt (both business and household) increased to approximately NIS 2.3 trillion (1.3 percent). The annual growth rate of outstanding debt continued to be positive, at about 6.8 percent in the quarter, although it was lower than the previous quarter’s rate of 7 percent.
- The balance of business sector debt increased by about 1.5 percent (about NIS 21 billion) during the first quarter, to about NIS 1.4 trillion. This was mainly due to net debt raised, made up of bank loans and debt raised through tradable bonds in Israel.
- Bond issuances in the business sector in Israel totaled about NIS 16 billion during the first quarter, similar to the quarterly average of the previous four quarters. About half of the bond issuances in the quarter were by companies in the construction and real estate industry, which continues to lead bond issuances similar to previous years.
- The balance of household debt also continued to increase during the quarter, to about NIS 855 billion, mainly due to an increase in the balance of housing debt (about NIS 7 billion, 1.2 percent), which was due to new mortgage volume from banks. The balance of nonhousing debt also grew, by about 0.7 percent, to NIS 237 billion.