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Barclays Capital sees Israeli economy growth accelerating

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Tuesday, September 28th, 2010

According to a survey published by the investment bank Israel’s economic growth for 2010 upped to 3.7% from 3.3% and projections for 2011 raised from 3.5% to 4%

Barclays Capital, a leading global British investment bank, published last week a highly positive quarterly survey on Israel’s economic growth. According to the survey, Israel’s economic growth  is accelerating, with projections for 2010 upped to 3.7% from 3.3% and projections for 2011 raised from 3.5% to 4%.

Barclay’s noted that Israel’s Q2 growth had exceeded expectations, and the company said that it was “becoming more confident” about the nation’s ability to sustain economic growth. In addition to reporting positively on the country’s growth, Barclay’s Capital predicts that inflation will slow down, putting inflation rates at 2.2% and 2.5% for 2010 and 2011, respectively.

Barclays feels that lower inflation will enable Bank of Israel Governor Stanley Fischer to raise the interest rate from its current level of 1.75% to 3% with gradual rises every three months.

Source: Port2Port