Israel’s coronavirus inoculation campaign is injecting more than just vaccinations into arms, as projections of a vaccine-enabled economic recovery are sending investors into Israeli markets, The Wall Street Journal reported on Friday.
Global investors’ typical portfolio allocation include only small amounts for Israeli stocks, but Israel’s impressive vaccination campaign has drawn attention globally, according to the WSJ.
Israel’s TA-125 stock index gained nearly 6% in dollar terms this year, outperforming both the S&P 500 and the Euro Stoxx Index, as investors bet that the speedy vaccine rollout will make Israel a front-runner in economic recovery following the coronavirus pandemic, according to the newspaper
The Bank of Israel, Israel’s central bank, projected that Israel’s gross domestic product (GDP) will rise 6.3% in 2021, after an expected contraction of 3.7% in 2020 due to the success of the vaccination campaign, according to the WSJ.The coronavirus pandemic and ensuing lockdowns have had large impacts on global markets.