The Bank of Israel has reported a 0.6% increase in the Composite State of the Economy Index for January 2024. This growth reflects the strengthening of economic activity following the ceasefire in the north that began in October 2024.
Key Growth Drivers
The Bank highlighted several positive factors that contributed to this economic rise:
- Increase in the Industrial Production Index
- Growth in the Services Revenue Index
- Higher Retail Trade Revenue Index (December 2024)
- Increase in Job Vacancies (November 2024)
Challenges Affecting Growth
However, some indicators negatively impacted the index, including:
- Decline in the import of consumption goods
- Drop in imports of production inputs
- Decrease in goods exports (January 2024)
- Lower services exports (November 2024)
Understanding the Economy Index
The Composite State of the Economy Index is a key indicator used to track Israel’s real-time economic activity. It is calculated based on 10 economic factors, including:
- Industrial production
- Trade and services revenue
- Imports of consumer and manufacturing goods
- Exports of goods and services
- Employment trends in the private sector
- Job vacancy rate
- Number of building projects started
The Bank of Israel’s Research Department calculates the index monthly, aligning with the release of the Industrial Production Index from the Central Bureau of Statistics.
