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Central Bank predicts 2.5% growth in 2010
Bank of Israel updates financial projections, says 2009 GDP to remain as is, add 2.5% next year. Unemployment predictions bleak
The Bank of Israel issued an updated financial forecast for the Israeli economy Tuesday.
April saw the Bank predict that Israel's gross domestic product will shrink by 1.5%, adding only 1% in 2010.
The bank now predicts that while 2009's GDP will be similar to that of 2008, the coming fiscal year will see it add some 2.5%.
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"The macroeconomic projection for 2009-2010 was updated following the positive performance of both the Israeli and world markets in Q2 2009, and following the positive trend noted in worldwide trade projections," a Bank statement said.
The growth predictions for 2010, added the Bank, "Are based on a 6.3% projected growth in exports."
Nevertheless, the Bank predicts that unemployment rates will continue to rise: "Q2 saw unemployment rates reach 8% and may reach 8.1% by the end of the year. In 2010, we may see unemployment rates increase to 8.3%."
