The IMF predicts that Israel will have a significantly higher growth rate than most European and North American countries, but far less than several other countries in the region. The prediction appears in the semiannual IMF global growth forecast, published today in Washington. The IMF has included Israel in its group of advanced economies for years.
The IMF is more pessimistic than the Bank of Israel regarding Israel's growth rate. The IMF predicts 3% growth in 2008, compared with 3.2% predicted by the Bank of Israel. Both institutions predict 3.4% growth in 2009. The projects reflect a sharp decline in Israel's growth rate, in line with other advanced economies. Israel's economy grew by 5.3% in 2007 and 5.2% in 2006.
The IMF's 2009 growth forecast for Israel puts it among the rate projected for emerging economies, behind Singapore (4.5%), South Korea (4.4%), Taiwan (4.1%), Slovenia and Cyprus (3.5% each). These growth rates are well above the 1.3% average growth projected for developed economies in 2009: US (0.6%), the Euro bloc (1.2%), Japan (1.5%) and the UK (1.6%).
Israel is also well positioned among emerging economies in 2008, as well, lagging behind the five countries listed above, plus Greece.
However, Israel is at the bottom in comparison with other Middle Eastern countries in terms of growth. The IMF says that Middle Eastern economies, and not only oil exporters, are undergoing rapid growth, and it predicts 6.1% growth for the region in both 2008 and 2009. The IMF predicts 7% growth for Egypt in 2008 and 7.1% in 2009; Syria is projected to see 4% growth in 2008 and 4.8% in 2009; Jordan will see 5.5% growth in 2008 and 5.5% in 2009; Iran will see 5.8% growth in 2008 and 4.7% in 2009; and Saudi Arabia will see 4.8% growth in 2008 and 5.6% in 2009.
The IMF predicts that Israel will have 2.6% inflation in 2008 and 2% in 2009.
Published by Globes [online], Israel business news - www.globes-online.com - on April 9, 2008
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