Goldman Sachs predicts that Israel's GDP will grow by 3.7% in 2010 and by 4.1% in 2011.
In its "Global Monthly FX Analysis", Goldman Sachs predicts that the shekel will continue to appreciate and that the shekel-dollar exchange rate will reach NIS 3.30/$ in six months, and NIS 3.25/$ in a year.
Goldman Sachs says that the Bank of Israel will continue to withdraw policy stimulus gradually, as the Israeli economy, especially exports, are in much better shape than 18 months-two years ago. In addition, the interest rate gap with the US will widen as the Bank of Israel will continue to gradually raise the interest rate.
Goldman Sachs predicts that Israel's GDP will grow by 3.7% in 2010 and by 4.1% in 2011, much faster than the US's GDP. It predicts that the Bank of Israel will raise the interest rate to 2.25% by the end of 2010 and to 3.5% by the end of 2011.
Published by Globes [online], Israel business news - www.globes-online.com - on October 14, 2010
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