A stable economy and renewed commitment to infrastructure spending by the government bodes well for Israel’s cement producers, although rising cement imports are making for a more competitive environment that has challenged the status quo.
Israel’s GDP is estimated to have advanced by three per cent in 2017, according to the Central Bureau of Statistics. This follows growth of four and 2.6 per cent in 2015 and 2016, respectively. The third quarter of last year saw the economy expand by 3.5 per cent, notably higher than the 2.6 per cent improvement reported in the 2Q17 and the 0.9 per cent rise seen in the 1Q17. The current account deficit has reportedly reached its lowest point in recent years at ILS8bn (US$2.34bn), or 1.1 per cent of GDP, on the back of tax revenue surpluses. Last year also saw visitor numbers to Israel hitting a record high of 3.6m, up by 700,000 on the previous year and revenue from tourism is expected to touch the E5bn mark.
