BOI: Economic growth forecast up to 4% in 2010

Port2port News Service
oct 5, 2010

The GDP for 2011 is expected to increase at a rate of 3.8%, a little less than the previous April projection of 4%BOI: Economic growth forecast up to 4% in 2010
 
The Bank of Israel (BoI) reported last Tuesday that the gross domestic product is expected to grow at a rate of 4% in 2010, up from April's projection of 3.7%. citing rapid economic growth during the year and low Q2 unemployment.
 
The report noted that the macroeconomic projections for the years 2010 and 2011 were updated due to the publication of economic data for the second quarter of this year as well as updated forecasts from trading around the world. The GDP for 2011 is expected to increase at a rate of 3.8%, a little less than the previous April projection of 4%.
 
The Bank noted that "Data showing strong growth of GDP and uses, coupled with the low unemployment rate in the second quarter, induced a slight upward adjustment of 2010 GDP, an upward adjustment of uses and imports, and a major downward adjustment of the unemployment rate." 
 
The Bank of Israel also expects the average unemployment rate to fall to 6.3%, and expects the current account surplus to amount to $6.8 billion.
 
The rate of growth for 2011 is also expected to be lower due to a decrease in the rate of export growth, which is projected to rise at a rate of 5.8%, less than the projected rate of world trade, which stands at 7%.
 
The main factor expected to contribute to the drop in Israeli export rates is the projected decrease in the rate of US economic growth, which Israel's exports are especially reliant on.

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