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Israel’s economy was adversely affected by COVID-19 pandemic in 2020. The growth of real gross domestic product (GDP) of Israel shrank and unemployment levels increased due to COVID-19 in 2020. As of 20^th May 2021, Israel had 8,39,162 confirmed COVID-19 cases out of which 6,395 people have lost their lives.

In this blog post we will be focusing on economic impact of COVID-19 pandemic on Israel. We will also be looking at the fiscal, monetary, employment and social policy measures taken by Israel government under following sections –

1. Impact of COVID-19 on Israel Economy in 2020

2. COVID-19 Containment Measures of Israel

3. COVID-19 Related Fiscal Policy Measures by Israel

4. COVID-19 Related Monetary Policy Measures by Israel

5. COVID-19 Related Employment Policy Measures by Israel

6. COVID-19 Related Social Policy Measures by Israel

We have covered various macroeconomic factors and PESTLE (political, economic, social, technological, legal, and environmental), SWOT (Strengths, Weaknesses, Opportunities and Threats) and risk analysis for Israel in separate market research reports.

1. Impact of COVID-19 on Israel Economy in 2020

Israel’s real gross domestic product (GDP) was ILS 1342.97 billion in 2019 and due to COVID-19 outbreak it contracted by 2.43% to be around ILS 1311.05 billion in 2020. It is expected to increase by 4.75% in 2021 and reach ILS 1376.48 billion.

Israel’s unemployment rate was 3.825% of total labor force in 2019. Due to slowdown in global economic activity due to COVID-19 pandemic the unemployment increased by 11.05% and reached 4.3% in 2020. Unemployment is further estimated to increase in 2021 by 14% and reach 5% of total labor force in Israel.

Israel’s current account balance in 2020 was 4.902% of GDP compared to 3.12% of GDP in 2019. This means Israel remained net lender to rest of the world in 2020.

As of 06^th May 2021, the Israel government has taken following fiscal,...