The IMF report last week said it all. The Israeli economy is set to grow at 7% this year, way above the global average and indicating a stronger performance than already estimated by the Bank of Israel.

Many of the key performance indicators point to a revival of the economy, inching its way out the corona-led pulldown.

• While unemployment remains relatively high at close to 8%, a record number of job vacancies were posted in September.
• The fiscal debt is shrinking, dropping towards previous and more acceptable levels.
• Mortgage uptake remains amazingly (and somewhat unexplainedly) high.
• And the price index has never risen so quickly in years.

Does this mean that the economy is returning to its strong overall performance or is it overheating in the direction of inflation?

The Bank of Israel recently explained that there is no cause for concern. Inflation is not on the horizon. Possibly, although I remain skeptical. What may keep inflationary pressures under control is the threat of a new wave of the corona virus. According to press reports today, the latest set of vaccines is already on the way to the Holy Land.

Meantime, judging from the number of people in the shops, consumers are taking advantage of their opportunities. Their spending levels have already returned to the heave peaks pre-corona peaks of early 2020. For now, that is excellent news.