The Israeli economy is expected to take a hit from the Trump administration’s proposed global tariff plan, with the Finance Ministry estimating a potential annual GDP loss of less than 0.5%, or under NIS 10 billion.
Tel Aviv, Israel © Mena Today
The Israeli economy is expected to take a hit from the Trump administration’s proposed global tariff plan, with the Finance Ministry estimating a potential annual GDP loss of less than 0.5%, or under NIS 10 billion.
Despite the uncertainty around the final tariff rates, the ministry considers the expected impact moderate compared to forecasts for other countries, including the U.S. itself.
The Ministry of Finance had already been planning to revise its 2025 growth forecast downward due to better-than-expected GDP results for 2024. Initial estimates predicted 4.3% growth, but recent figures show 2024 growth at 1%, slightly above previous projections.
While the final revision will be announced by late May or early June, the tariff issue has made a reduction in the growth forecast inevitable.
The Bank of Israel has already adjusted its 2025 forecast from 4% to 3.5%, while the IMF now predicts Israel’s economy will grow by 3.2%, an improvement from its earlier 2.7% forecast.
A new poll conducted between April 28 and May 5 reveals a striking picture of Lebanese public opinion on a potential peace agreement with Israel: across most of the country's major religious communities, support is either strong or majority, with one dramatic exception.
The organisers of an aid flotilla bound for Gaza said on Tuesday Israeli forces had intercepted 41 of their boats in the eastern Mediterranean, with 10 vessels still sailing toward the enclave.
The organisers of a flotilla of aid vessels bound for Gaza said on Monday that Israeli forces had intercepted 39 of their boats in the eastern Mediterranean, while the remaining ships were continuing to sail toward the enclave.
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