Israel Growth and Inflation Moderate, Raising Prospects of Rate Cuts Amid War Spending Concerns
• Israel's Q3 GDP growth revised down to 2.5% from 2.8%; raises prospects of rate cuts • Inflation eased more than expected in November to 3.3% from 3.7% • Economic growth projected around 2% in 2023 due to negative impact from war with Hamas • Policymakers concerned over sharp rise in state spending to finance war • Consumer spending, exports, investment, and government spending all rose in Q3