Israel's central bank chief, Amir Yaron, has expressed hope that a resolution to the wars in Lebanon and Iran can help alleviate economic pain. Yaron has reduced growth expectations for 2026 from 5.2% to 3.8% due to the Middle East conflict, but believes growth can rebound to 5.5% in 2027 if conflicts are resolved. However, he also acknowledged the possibility of a prolonged conflict, which would significantly impact growth and inflation expectations. Despite this, Yaron noted that Israel's economy has shown resilience in stabilising what would otherwise be an un-normal situation.