Israel's purchasing power eroding
The minister of finance now predicts that Israel's economy will grow by 3.5% in 2013.
A month before the Knesset election, Minister of Finance Yuval Steinitz estimates that the Israeli economy will grow faster in 2013 and 2014 than his ministry has forecast up to now.
Steinitz was speaking last night at the annual conference of insurance and pensions industry organization "Adif", in Ramat Gan. "The Ministry of Finance Research Division has updated its growth forecast for 2013 and 2014. The growth forecast for 2013 is 3.5%, and for 2014 3.9%," Steinitz said.
The ministry's previous growth forecast was 3% for 2013, and 3.4% for 2014.
Steinitz added, "I wish to warn that additional growth does not in this instance mean additional state revenues, because we have taken revenues from taxes on gas into account. The effect on job creation will be limited.
"Assuming that the growth forecast is realized, and this is a realistic forecast prepared by the Research Division and supervised by the ministry, Israel will continue, for the next two years as well, to be the number one growth economy among all the countries of the developed Western world. We must do our utmost to preserve this position, to preserve a policy that continues to reinforce the economy's growth engines, with encouragement for investment and encouragement for job creation."
Published by Globes [online], Israel business news - www.globes-online.com - on December 17, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012
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