“The Economist”: Israel will have $2.2 billion direct foreign investment a year in 2003-07.
The recovery in global financial investment in high-tech in the wake of the Iraq War is liable to bypass Israel, due to the conflict with the Palestinians and local recession.
British weekly “The Economist” predicts that direct foreign investment in 2003-07 will not increase so long as Israel and its financial markets are perceived as high risk.
“The Economist” places Israel at the bottom of its table of “foreign direct investment average annual inflow 2003-2007”, at only 0.25% of total global direct foreign investment, half the Israeli economy’s potential of 0.5% in 1997-2001. “The Economist” estimates direct foreign investment in Israel will be only $2.23 billion a year in the next five years, compared with $4-5.7 billion in recent years.
Published by Globes [online] - www.globes.co.il - on April 14, 2003