"The Economist" sees unemployment in Israel falling faster than expected

"Israel's economy is stable and strong, thanks to an inflow of foreign investment and rising exports."

Zeev Klein 26 Apr 05 14:57

Israel's economy is stable and strong, thanks to an inflow of foreign investment and rising exports, states "The Economist Intelligence Unit" (EIU) in its latest survey of the Israeli economy, published yesterday.
The EIU believes that prices in Israel and the balance of payments will remain stable, which will enable the Bank of Israel to preserve low inflation, within the government's inflation target of 1-3%. A small increase in the current accounts deficit is expected only in 2006, following surpluses in 2003-04, and no expected change in 2005.

The EIU adds that Israel's economic recovery will continue in 2006. Exports, investment, private consumption, and real wages will rise, as will government spending. On the other hand, the unemployment rate will fall faster than expected, and the government's budget deficit will fall to within the government target, excluding major expenses related to financing the disengagement plan.

posted by Avi G @ 17:29