UBS AG cuts GDP forecast to 1% in 2009

UBS's emerging-markets analysts cut their 2009 estimate of gross domestic product growth in Israel to just 1% from 2.2%, with a recoup to 2.7% in 2010
 
UBS AG said last Sunday in a report that Israeli economic growth will probably slow to 1% next year. UBS's emerging-markets analysts cut their 2009 estimate of gross domestic product growth in Israel to just 1% from 2.2%, with a recoup to 2.7% in 2010. UBS AG cited a "poor growth outlook" for the US and the European Union, Israel's two biggest trading partners as well as lower consumer confidence and consumption.
 
The cut comes less than a month after UBS lowered its Israel outlook to 2.2% from 3.1%. Last month UBS AG issued a report titled "Storm Clouds Gathering," in which UBS Israel lowered their GDP estimate for the country to 2.2% from 3.1%, due to a likely decline in exports as the world economy slows.
 
Economic growth will accelerate in 2010 to 2.7%. If the forecast is correct, the economy will next year post its worst performance since 2002, when output contracted. Gross domestic product will increase 4.1% this year, according to UBS.