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UBS RAISES ISRAEL’S 2010 GROWTH FORECAST TO 3.5%

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Friday, May 14th, 2010

“The big picture remains that thanks to its sound macroeconomic and structural fundamentals, the Israeli economy appears well positioned to recover from the global crisis and return to respectable growth rates earlier than many other EMEA economies,” – UBS analyst Reinhard Cluse

UBS raised its growth forecast for Israel to 3.5% from 3% in 2010, following an upsurge in the bank’s leading economic indicators for Israel in February. The Swiss bank also reiterated its 3.8% GDP growth forecast for 2011.

UBS said that Israel’s leading economic indicators indicate that economic growth will continue into the second quarter. Growth was supported by private and public consumption and by exports.

In late April, the Governor of the Bank of Israel Stanley Fischer had predicted the country’s economy would grow 3.7% this year, up from his earlier prediction of 3.5%. He also forecast that unemployment would fall to 7% this year, down from 7.4% in 2009.

Source: Invest in Israel