With economic uncertainty rife across the globe, there is a lot of drive to find secure investments. This is why the US dollar is performing so well. It is considered a safe haven currency for investors around the world. Similarly, gold is considered a safe haven investment, and attracts many buyers in uncertain times.
However, these are not the only investments that are still sound in 2022. Not all countries are struggling economically. Israel is one country that has maintained a strong outlook for investors.
Let’s look at just how well Israel is doing in 2022 compared to the rest of the world, as well as why this might be.
Israel’s economy in 2022
If you’ve been following the stock exchanges in the US, you’ll have noticed some worrying trends. Investors are getting jittery, leading to significant sell-offs. While the worst-case-scenario is unlikely to occur for the next few months, the signs don’t look good.
This is best measured by the S&P 500 index which tracks the performance of big companies listed on stock exchanges in the US. The S&P 500 is down 22% since last year and it might get worse before it gets better. This is very discouraging for people and firms looking to invest in the US.
Comparatively, Israel is doing incredibly. The Tel Aviv Stock Exchange is not quite soaring, but it has stayed stable over the past 12 months. This is a huge sign of economic stability, despite 2022 being a very difficult year for the economies of most countries.
When we look at Israel’s property market, we see similar signs of stability. Property prices in Israel have been soaring since mid-2020. While this has been true in most developed countries around the world, that trend is changing everywhere else. There are major corrections occurring in property in the US and UK, with potential crashes imminent.
In Israel, property prices are still soaring. This is in spite of higher interest rates and indicates high confidence in Israel’s property market. Demand remains high in the face of higher prices and the negative economic realities around the world. Interest rate hikes in Israel are lower than in the US due to lower levels of inflation, which is another sign that a crash is unlikely.
Why is it that Israel’s economy is still doing so well in 2022? Here are some of the reasons.
The source of the strength of Israel’s economy
Why does demand for property and other investments in Israel remain high? The answer lies within Israel’s purpose and vision. Around the world, Jewish communities dream of living in Israel, planning to do so at some point in the future. There is always a constant stream of new immigrants arriving from many different countries.
In other words, Israel’s economic strength is premised on more than just circumstantial factors. Those of us who invest in Israel do so for a reason that is not dependent on financial success. It is in order to build a future in Israel.
This is particularly important in the property market. Demand for property is going down around the world as people cannot afford it. But in Israel, demand remains high because it is not limited to Israelis. A relatively high proportion of that demand comes from Jewish communities in other countries.
Israel is not only meaningful to the Jewish people. In the US, there are many Evangelical Christians who see meaning in the revival of the Jewish State. They contribute a lot of money to keep Israel’s economy moving forward. They also put pressure on the government to keep sending funds to Israel.
Which, of course, brings us to another source of economic strength in Israel. The US continues to send huge amounts of money to Israel, for a number of reasons. These include the bolstering of Israel’s economy, the development of weaponry, and the strength of allyship in the region.
Israel’s economic strength is therefore unlikely to wane. For investors looking for an alternative during tough economic times, Israel is still a hub in 2022.
Sending money to Israel
Israel’s status as an investment hub to people around the world has led to an increasing amount of foreign payments being made to Israeli accounts. The good news is that sending money to Israel has never been easier. With money transfers to Israel cheap and convenient, the shekel has become far more liquid and accessible.
These cheap and convenient payments are not facilitated by big banks in the US (or elsewhere). Rather, they are made possible by money transfer companies, which have gained prominence over the past few years as more and more people have looked for foreign exchange alternatives.
Money transfer providers offer low fees and excellent exchange rates when sending money abroad. They do it in a far shorter time as well. Whereas bank payments would take ages and cost a lot of money, especially on a repeat basis, these companies do it with ease at incredibly low rates.
For years, many money transfer companies did not have options for sending money to Israel. Israel is, after all, a very small country that attracts a very particular demographic. However, once the benefits of investing in Israel became more and more clear, Israel’s status as an investment hub led to a lot of foreign payments. It became beneficial for money transfer providers to set up better payment options.
Sending money from the US to Israel is now easier than ever, which is perfect for local Jewish communities looking to invest in the country. With economic chaos in most countries around the world, Israel is looking like a perfect investment hub, especially for those who intend to live there in the future.
As 2022 continues and the world edges towards a potential recession, there are reasons to remain optimistic in the Israeli economy’s staying power. With many sources of strength coming from outside the country, investors are still finding it a worthwhile place to invest.
