A global slowdown, particularly in the US, is expected to lower business product.
The Manufacturers Association of Israel has revised its 2008 economic growth and business product forecasts downwards. It cut its GDP forecast to 3.5% from 4.3% and its business product forecast to 4% from 5%.
GDP growth averaged 5.3% a year in the past four years, and business product growth averaged 6.6%. The Manufacturers Association also cut its forecast for exports of goods and services growth to 4.6% from 7.4%. Exports of goods and services grew by 8.7% in 2007, compared with 2006.
The Manufacturers Association cut its forecasts because of the global slowdown, especially in the US, as well as the sharp appreciation in the shekel against other currencies.
Published by Globes [online], Israel business news - www.globes-online.com - on February 18, 2008
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