The shekel continued to strengthen against the dollar in morning inter-bank trading today. The shekel-dollar exchange rate is down 0.54%, compared with yesterday's representative rate, to NIS 3.792/$, and the shekel-euro exchange rate fell 0.17% to NIS 4.876/€, after initial gains.
Asian markets rose today, following yesterday's gains on Wall Street, but European markets are mixed in early trading. In the US, a number of macroeconomic figures for December 2011, including building starts, the Consumer Price Index (CPI), and the Philadelphia Federal Reserve Manufacturing Index will be published today.
Yesterday Minister of Finance Yuval Steinitz updated the Knesset Finance Committee that the ministry had cut its tax revenues estimate for 2012 to NIS 221 billion from NIS 232.3 billion. Tax revenues totaled NIS 211.3 billion in 2011; the 2012 forecast implies 4.6% growth in taxes.
The Ministry of Finance has raised its budget deficit estimate for 2012 to 3.4% from the 2% set in the biennial budget written in 2010. The main reason for the higher deficit forecast is an NIS 11 billion shortfall in tax revenues compared with the budget plan. The ministry cut its 2012 GDP growth forecast to 3.2% from 4%.
Published by Globes [online], Israel business news - www.globes-online.com - on January 19, 2012
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