The Federal Reserve’s hawkish stance on fighting multi-decade high inflation has raised concerns about a potential economic slowdown, which has driven massive stock market volatility. Shares of several Israeli companies have also witnessed a sharp decline on fears of an economic contraction. According to an initial estimate released by the Central Bureau of Statistics, Israel's GDP shrank by 1.6% on an annualized basis in the first quarter of 2022. However, its GDP growth is expected to rebound later this year.
In Israel, interest rates have remained flat for most of the last decade, making the investment environment there favorable. In addition, Israel’s GDP-to-debt ratio is the lowest in the developed world, and it is the only country in the world whose currency has appreciated relative to the dollar since the global financial crisis.
