Israel’s economy is performing well and the EPI grades its current economic performance at a solid B level, with the EPI score projected to be 92.2% in 2016.

GDP growth is expected to stay around 3% in 2016, as the result of strong private consumption growth, driven by rapid employment growth and near-zero interest rates. Inflation was slightly negative in 2015, driven by lower commodity prices, stronger shekel, and tax cut as well as structural factors such as higher competition in local markets that pushed prices down in many sectors. Unemployment remains stable at around 5% and the government is keeping budget deficit below 4% of GDP.

The 5-Minute Economist projects Israel’s EPI score to remain roughly at the same level in the medium term, showing solid B-level economic performance.