Israel’s Economy Seen Riding Out Latest Political Uncertainty

(Bloomberg) -- Israel’s economy remains strong with growth holding at about 3% despite a prolonged political deadlock, a senior central bank official said.

While Israel is preparing for a third election in less than a year, business activity remains solid and exports of services are growing, Michel Strawczynski, director of the Bank of Israel’s research division, said Monday at an investor conference in Eilat.

After two back-to-back elections led to a stalemate between Prime Minister Benjamin Netanyahu and his top opponent, former military chief Benny Gantz, parliament voted last week to dissolve itself and call new elections in March.

Economic growth in November grew at a pace similar to its potential, Strawczynski said, according to comments published on the bank’s website. It’s expected to continue at about the same rate in 2020, despite a likely contraction in government spending due to the lack of a new budget, he said.

To contact the reporter on this story: Alisa Odenheimer in Jerusalem at aodenheimer@bloomberg.net

To contact the editors responsible for this story: Shaji Mathew at shajimathew@bloomberg.net, Michael Gunn, Karl Maier

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