The investment bank said exports to the US account for almost 17% of Israeli GDP.
Merrill Lynch, in a report on emerging EMEA (Europe, Middle East, and Asia) economies, says that Israel's GDP growth in 2008 will reach over 4%, but will slow to only a quarter of that rate in 2009.
The investment bank attributes its estimated 2008 growth of 4.1% to strong export performance and domestic demand. However, as exports to the US account for almost 17% of Israeli GDP, the investment bank sees the growth rates slowing to 1% in 2009.
Merrill expects that the budget deficit will widen to 2.9% of GDP.
Published by Globes [online], Israel business news - www.globes-online.com - on December 7, 2008
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