Manufacturers: elections will influence growth in 2006

Following the announcement of early general elections, the Manufacturers Association revised its previous economic forecast and now predicts 4.5% GDP growth in 2006, 5.7% growth in business product, and 2.8% growth in GDP per capita.
 
The revised economic forecast also predicts that the unemployment rate will fall to 8.6%, or 243,000 unemployed.
 
Manufacturers Association president Shraga Brosh presenting the figures said last week that if the budget was not approved, investment plans, including investment in R&D, would most certainly be jeopardized.
 
Brosh also called upon the government and Knesset to demonstrate national responsibility and avoid election economics”.
 
The present 2006 growth forecast compares with 5.1% GDP growth in 2005 and 4.4% growth in 2004; business product growth of 6.4% in 2004 and 2005; GDP per capita growth of 3.2% in 2005 and 2.6% in 2004; and an unemployment rate of 9% this year, and 10.4% last year.
 
The revised economic forecast also predicts that in 2006 exports will grow by 8.1%, after rising 6.5% in 2005 and 17.4% in 2004.
 
Brosh noted with satisfaction that he expected unemployment rate to reach 8.6% compared to 9% in 2005 ( 247,000) and 10.4% in 2004 ( 278,000).