ECONOMY

As the IDF drafts tens of thousands of reservists, the consequence could be higher taxes, more civilian spending cuts, and a wider deficit.

The population has grown by 1.4% or 135,000 since last Independence Day.

According to the Stockholm International Peace Research Institute, this was the largest jump in Israel's military expenditure since the Six Day War of 1967.

The plan is to include advanced training funds in a more general reform designed to equalize taxation for various savings programs.

The government wants to cancel the bill as part of the war on Hamas, which is sitting on a mountain of Israeli cash, but the Bank of Israel is opposed.

Industry experts agree that Intel staff dismissed in Israel will have no trouble finding work at rivals like Nvidia, as happened during last year's layoffs.

Amid the uncertainty that still surrounds the level of tariffs that would ultimately be imposed on Israeli goods, the annual damage to growth is estimated by the Finance Ministry at less than 0.5% of GDP.

"Bloomberg" reports that new CEO Lip-Bu Tan will announce the layoffs this week.

Two delegations will fly to Washington for talks on the matter with proposals including cutting bureaucracy for US imports.

The March reading brings annual inflation in Israel down to 3.3% from 3.4% at the end of February.

With thousands of tech employees leaving Israel, the Innovation Authority proposes measures that could reverse the trend.

Tel Aviv's position as one of the world's wealthiest cities took a big knock over the past year as it slipped from 42nd to 48th in investment advisors Henley & Co.'s "World's Wealthiest Cities" Top 50 ranking.

The Dayan committee on the future of the gas sector estimates that Israel's natural gas reserves will run out in 2045.

The deficit narrowed in the twelve months to the end of March 2025, for the sixth consecutive month, Ministry of Finance accountant general Yali Rothenberg reported today.

Prof. Amir Yaron tells "Globes" that there is a risk that the new tariffs will cause inflation to rise in the US, with a knock-on effect for Israel.

Asked by reporters whether Israel would be exempted from his tariffs policy, US President Donald Trump replied, "Maybe not. Don’t forget we help Israel a lot."

Israel’s foreign exchange reserves at the end of March 2025 fell to $218.821 billion, a decrease of $1.433 billion from their level at the end of February, the Bank of Israel reports.

The Bank of Israel is concerned about inflation, the escalation of the war in Gaza, which has raised Israel's risk premium, and the turmoil on global markets set off by the trade war.

Amid increased relocation, Israel's tech workforce has contracted for the first time in over a decade, the Israel Innovation Authority reports.

Even if Israel obtains relief from the tariff imposed on it by US President Trump, it will feel the global effects of the trade war, analysts say.

The shekel weakened significantly against both the US dollar and the euro at the opening of foreign exchange trading today.

According to news website Axios, Prime Minister Benjamin Netanyahu will be the first leader to meet President Trump after the latter's announcement of sweeping import tariffs.

Minister of Finance Bezalel Smotrich tried to persuade Secretary of the Treasury Scott Bessent to soften the tariff blow on Israel - only Bessent isn't responsible for the matter.

Israel will be charged a higher tariff on its exports to the US - its biggest export customer - than Turkey and the UAE.

Relatively low reciprocal tariffs will be imposed on Israeli goods sold in the US.

The OECD Israel Economic Survey 2025 recommends that the Israeli government take several restraining measures, in order to exit the economic storm created by the war.

Most unusually, Governor of the Bank of Israel Amir Yaron's press conference last week did not focus on inflation and the impending interest rate decision.

Minister of Finance Bezalel Smotrich has signed an order canceling all tariffs on imports from the US. The impact will mostly be on agricultural produce.

There are a few dozen Israelis listed in the 2025 Forbes Real-Time Billionaires List including Wiz founders Assaf Rappaport, Yinon Costica, Roy Reznik and Ami Luttwak.

The ratings agency said, "The negative outlook reflects rising public debt, domestic political and governance challenges and uncertain prospects for the conflict in Gaza."

Israel's Sovereign Wealth Fund, known as the Citizens' Fund, had assets worth about $2 billion at the end of 2024, the Ministry of Finance reports.