February 5, 2026
PRESS OFFICER: Eva Graf
Phone: +1 202 623-7100Email: MEDIA@IMF.org
A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF's Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.
The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.Jerusalem, Israel:
Israel’s economy has demonstrated notable resilience. Following the Gaza ceasefire, economic activity accelerated markedly, and staff expect growth to firm in the near term. But there are downside risks, including from potential renewed regional tensions. The conflict’s legacy is substantial: defense spending remains elevated, risk premia are higher, and labor supply is constrained by extended military mobilization and reduced availability of non-Israeli workers. These pressures would compound longstanding structural challenges—such as persistently low labor market participation among specific groups—and weigh on the medium-term economic outlook.
Economic outlook and risks
Restoring fiscal buffers amid higher defense spending
Advancing the longstanding structural reform agenda
Ensuring price and financial stability, and strengthening financial integrity
The mission thanks the authorities and private sector counterparts for their warm hospitality and candid and high-quality discussions. The IMF team is especially grateful to the Bank of Israel for its assistance with meeting and logistical arrangements.
