Uncertainty surrounding the Israeli government’s proposed judicial overhaul is a “notable downside risk to growth,” the International Monetary Fund said, with further unrest likely and business leaders threatening a withdrawal of capital.
(Bloomberg) — Uncertainty surrounding the Israeli government’s proposed judicial overhaul is a “notable downside risk to growth,” the International Monetary Fund said, with further unrest likely and business leaders threatening a withdrawal of capital.
The economy is expected to grow 2.5% in 2023, down from 6.5% last year, as household purchasing power moderates and firms rein in investment, the IMF said in preliminary findings submitted to the Bank of Israel on Wednesday.
Israeli Prime Minister Benjamin Netanyahu’s recently elected far-right coalition has initiated plans to reduce the power of the courts, triggering mass protests from opponents who fear an erosions of the country’s democracy.
Among those expressing concern are leaders of Israel’s thriving hi-tech industry, who have warned they could withdraw funds and operations.
Netanyahu suspended the plans in March after tens of thousands took to the streets to protest, saying he would seek a compromise.
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