If you judge by the headlines alone, Israel’s economy seems under pressure for the first time in almost two decades.

• Inflation on the move – a monthly climb of 0.8% in April
• Strikes looming in key parts of the public sector.
• House prices rising by 16% annually, as of the end of April.
• The GDP shrunk in the first quarter of 2022.
• Super-Unicorn “Wix” continues to post loses.

All gloom?

Not really. Yes – politically, any opposition party would seize on this pile of ammunition and pound their foes. However, as with the government, Israel’s opposition is as united as the United Nations itself (sic).

The truth is that for now, the fundamentals are strong. For example:

1. Due to some unusual one-off statistical reporting, the GDP was not expected to reveal strong findings this time round.
2. Israel is discovering additional large gas supplies, just at a time when Europe needs to replace its Russian resources.
3. Israeli high-tech continues to find new markets, now accounting for over 54% of all of its exports.
4. Dare I say it, but Israel’s defense manufacturers are also no doubt quietly benefitting from the fall out from Russia’s expansionist dreams.

If you want some anecdotal evidence, just consider my own work. I have seen a handful of clients this month alone who have approached me as a business mentor, looking to open up in the Jerusalem area.

When the “dot.com” bubble burst at the turn of the century, the Israeli economy took a hit. Since then, neither the credit crunch of 2008 nor wars with Hamas and the Hizbollah nor the pandemic have succeeded in halting the juggernaut of the start-up nations’ economy.

For now at least, Israel’s gloomy economic news may require some careful analysis but it has yet to demand a full rethink of policy.