The International Monetary Fund (IMF) forecasts 4.2% GDP growth in Israel in 2010, up from 0.8% growth in 2009. The optimistic forecast is contained in the IMF's bi-annual World Economic Outlook report which was published today on the eve of the IMF conference in Washington DC.

The IMF forecast is higher than the Bank of Israel's 4% prediction, which was issued on September 29, having been revised upwards from its 3.7% forecast in April.

In 2011 the IMF expects a slight slowdown in Israeli GDP growth to 3.8%, exactly the same prediction as the Bank of Israel.

Israel's 2010 IMF growth forecast is considerably higher than most other developed economies. The IMF predicts 3.3% growth for Germany, 1.6% for France, 1% for Italy, 1.7% for the UK, 2.9% for Switzerland, 1.8% for Holland, 2.6% for the US and 3.1% for Canada.

The IMF predicts that Israel's Consumer Price Index (CPI) will rise 2.3% in 2010.

Published by Globes, Israel business news - www.globes-online.com - on October 6, 2010

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