• Israeli stocks, as defined by the BlueStar® Israel Global Index (BIGI®), rose 12.57% in Q4 2024, finishing the year up over 26%, outperforming US large-cap stocks by just over 1%, and significantly outpacing other developed markets by nearly 22%.
  • Israeli technology stocks, as defined by the BlueStar® Israel Global Technology Index (BIGITech®), also gained 7.49% in Q4 2024.
  • The BoI Monetary Committee decided to leave rates unchanged at 4.5% during both the November and January meetings. The Committee cited elevated, though stable levels of inflation at 3.4%, above its upper range.
  • The Bank of Israel Research Department forecasts that GDP is expected to grow by .6% in 2024 and 4% in 2025, which was revised upward from its October forecast. The Department expects GDP to grow by 4.5% in 2026.
  • The government budget deficit is projected to reach 7% of GDP in 2024, driven by a positive surprise in tax revenues and moderated expenditures. For 2025, while the official deficit target is 4.4% of GDP, it is likely to rise to 4.7% due to adjustments in fiscal measures and increased defense spending recommended by the Nagel Committee.
  • Diplomatic and media sources cite that Israel and Hamas are closing in on a hostage and ceasefire deal that could dramatically stabilize the situation in Gaza. The proposed deal has not yet been finalized at the time of writing.

 

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