Bank of Israel upgrades macro forecasts predicts 2.5% growth in 2010

Exports should lead economic growth with a 6.3% increase excluding diamonds. The Bank previous estimate was for a 3% rise in exports
 
The Bank of Israel issued an updated financial forecast for the Israeli economy next year. As for 2010, the Bank of Israel sees GDP growing 2.5% in 2010, compared with its previous forecast of 1%. Exports should lead economic growth with a 6.3% increase excluding diamonds. The Bank previous estimate was for a 3% rise in exports.
 
Unemployment should reach 8.3% in 2010, consistent with its previous estimate. A Bank of Israel statement issued last week said. "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”.
 
The OECD however, predicted last week that Israel's GDP will shrink by 2% in 2009, and grow by just 0.2% in 2010. It expects Israel's private consumption to fall 1.7% this year and rise by 1.3% next year. The OECD also believes that Israel's exports will fall by 25.2% in 2009 and grow by 2.6% in 2010, while imports will fall 24.3% this year and grow by 3.7% next year.