The BoI raised its growth forecast for this year to 3.5%, compared with its previous September forecast of 2.5%
The Bank of Israel (BoI), Israel's central bank raised its economic forecast for 2010, citing an improved outlook for global growth and world trade.
The BoI raised its growth forecast for this year to 3.5%, compared with its previous September forecast of 2.5%.
The economy has bounced back from the global recession faster than most developed countries, expanding an annualized 3% in the third quarter of 2009, the most in more than a year.
Israel’s expected growth rate is higher than the International Monetary Fund 3.1% forecast for global growth this year and the Organization for Economic Cooperation and Development’s expectation of 1.9% growth for its 30 members.
The BoI also noted that exports will rise in 2009 by 8.6%, after contracting 11% in 2009, raising its forecast from 6.2%. Imports will increase by 11.4%, after contracting by 13.4%, raising its forecast from 7.3%.
Last Sunday, Merrill Lynch raised Israel's economic growth forecast for 2010 to 3.5%. The American bank's economists noted that Israel's economy continued to provide surprises after what they defined as a "shallow" recession in the beginning of 2009, and note that exports will continue to improve and serve as an important growth engine for the coming year.
Comparing other figures between the Bank of Israel's current forecast and its previous growth forecast, made in September 2009, shows expected business product growth of 4.1%, compared with 2.8% in the previous forecast; growth in private consumption of 4.8%, compared with 1.1%; growth in private consumption, excluding durable goods, of 3.1%, compared with 2.2%; and a jump in gross domestic investment - 9.3%, compared with only 1.9% in the previous estimate.