IMF: 3.9% Growth for Israel In 2006

The International Monetary Fund’s (IMF) biannual economic survey, released on 21 September, had forecast a 4.2% real growth rate for Israel in 2005 and 3.9% in 2006.
 
The IMF’s growth forecast for Israel this year is one of the highest in the IMF’s group of 29 advanced economies, which includes Israel.
 
The biannual economic survey forecast higher growth in Israel than in the US - 3.5%, the Euro bloc - 1.2% and Singapore - 3.9% however it forecast higher growth for Hong Kong - 6.3%, Iceland - 5.8% and Ireland - 5%.
 
The IMF’s growth forecast for Israel in 2005 is the lowest in the Middle East region. Oil exporters have the highest growth forecasts, for example Saudi Arabia - 6% in 2005 and 4.7% in 2006,Iran - 5.7% in 2005 and 5.4% in 2006, Jordan (5%) and Egypt (4.8%) have higher growth forecasts than Israel.
 
The biannual economic survey also predicts that the Consumer Price Index in Israel will rise by 1.2% in 2005 and 2.3% in 2006.
 
It also cites the falling trend in unemployment in Israel which will average 9.1% in 2005 and 8.7% in 2006, higher than unemployment rates in the IMF’s group of 29 advanced economies.