09/27/2012 22:54–Israel’s economy should grow by 3.2 percent to 3.3% this year, according to separate forecasts released Thursday by financial-services multinational Barclays and the Bank of Israel.
Barclays predicted in its quarterly report on emerging markets that Israel’s strong recent growth should continue, citing the continuation of positive data. It increased its 2012 GDP forecast slightly to 3.2%, but moderated its 2013 growth forecast to 3.5%.
“The Israeli economy remains in good shape,” the report said, but it warned that there are two looming risks: Fiscal deterioration is likely to continue because of political constraints on cutting expenditures, while geopolitical risks such as a potential conflict with Iran remain.
Barclays praised Israel for maintaining year-on-year growth above 3% in the first half of 2012. While this is a substantial reduction from the almost-5% growth achieved in 2011, it compares well with other small, open emerging-market economies such as Singapore and the Czech Republic, the report said…Read More>>