Investment bank Barclays Capital, in a review of global economies, says that it expects Israel's economy to grow 0.3% in 2009, and to grow 2.9% in 2010. In the EMEA (Europe, Middle East, EMEA and Australasia) region, Barclays says Israel is the "strongest recovery story".
Barlcays forecasts inflation in Israel, as measured by the Consumer Price Index (CPI), to be 3.2% in 2009, and 2.9% in 2010.
Barclays says that signs of a recovery among the export oriented high tech companies in Asia, Bank of Israel leading indicators, and Israel's exports outlook all point to optimism on Israel's economy.
The investment bank sees the Bank of Israel raising its interest rate from the current 0.75% to 1.25% by the end of the year (including a 25 basis point hike in September), and sees rates rising to 2.5% by the end of June 2010.
Barclays sees the shekel-dollar exchange rate dropping to NIS 3.65/$ in about three months, and to NIS 3.60/$ in about six months. The shekel dollar exchange rate is currently about NIS 3.76/$.
Published by Globes [online], Israel business news - www.globes-online.com - on September 15, 2009
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