Bank of Israel cuts 2014 economic growth forecast to 3.1%

Bank of Israel Governor Dr. Karnit Flug said that the Bank Research Department had revised its growth forecast downward cutting the 2014 economic growth forecast by 0.2% to 3.1%.

The bank estimates that without the effect of natural gas production from the Tamar gas field, the economy would grow only 2.8% this year. Tamar gas field contributed 1% to economic growth in 2013 and just 0.3% in 2014. The 2015 growth forecast was also revised downward to 3%. Per capita GDP is expected to increase by 1% in 2014 and 2015, according to forecasts.