Economy forecast to grow 4% in 2010

Israel's economy is forecast to grow 4% in 2010, slightly below a previous estimate of 4.1%, due to expectations of a smaller rise in exports, the Central Bureau of Statistics said on Sunday.

The economy grew 0.8% in 2009.

The bureau said its new estimate was based on seven to nine months of data. It also revised second-quarter growth to an annualized 4.5% from 4.6%. First quarter growth was lowered to 3.7% from 3.8%.

Israel's central bank also expects growth of 4% in 2010 and a slower 3.8% growth rate in 2011, as Israel has rebounded well from a brief recession but still faces uncertainty due to weakness in the United States and Europe.

Exports, which comprise more than 40% of Israel's economic activity, are forecast to grow 9.1% in 2010, compared with a prior estimate of 13.1% and a 12.5% drop last year.

Consumer spending is projected to grow 4.6% this year after a 1.7% rise in 2009. Investment in fixed assets is predicted to rise 6.2% after a 5.8% decline last year.

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