Fiscal deficit falls to lowest since 2023
Israel’s fiscal deficit for the twelve months to the end of April amounted to 3.8% of GDP, the lowest level recorded since November 2023.
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The narrowing deficit signals that wartime spending pressures may be easing, but the figure still reflects a strained economy recovering from shock. With the deficit now below the 4% threshold, the government gains some breathing room for fiscal policy. The key question is whether this trend can hold as defense costs and coalition spending demands persist.