For most Israelis, the date of the 17th March cannot arrive early enough. The dull campaign for a general election that few wanted will thankfully come to an end. The result is still uncertain. Maybe voters will be turned off the current incumbents due to economic reasons. Alternatively, will there remain enough people who will be prepared to stick with the ‘devil they know’?

Whoever takes up the reigns of power in the Spring – historically, Israeli election’s are followed by weeks of coalition negotiations – they are likely to greeted by a pleasing financial scenario.

1. Tax Revenues: A pattern is emerging of increased tax revenues, especially from direct taxes paid by corporations. This is often a sign that there is latent growth within the economy, as well as better tax collection systems. “Finance Ministry sources now expect that the tax collection target for 2015 will be set at around 270 billion shekels — 10 billion shekels higher than the draft 2015 budget presented.” Healthy.  
2. Tel Aviv Stock Market: TASE has spent much of the past two weeks reaching new record highs, in line with trends of other global markets. This is a double bonus. It is not just that stock markets tend to reflect the future expectations of players in  the financial markets. The Israeli stock market remains a key channel for companies to raise new investment.
3. Unemployment: “At 5.9 percent, Israel had one of the lowest unemployment rates in the developed world last year.” This figure is especially impressive, considering that the war with Gaza in the summer of 2014 severely impacted on the economy for months.
4. The gas industry: Israel’s regulators have invested much time and energy in changing the rules for overseas investors in the country’s new, lucrative off-shore gas industry. That said, the dream is coming true. As expected, royalties from the reservoirs will top US$250 billion this year, and with more to come.

All very encouraging news. So why are people not feeling this change? Why are retail sales remaining depressed for now? And why is there a feeling amongst my clients that the next government could blow these gains?