Friday, November 4, 2011

Bethel Finances: Leumi predicts 4.9% GDP growth in 2011

www.bethelfinance.com
Bank Leumi today predicts that Israel will achieve 4.9% GDP growth in 2011 and 3.3% growth in 2012, as the global economic slowdown and the social protest begin to affect the economy.

Bank Leumi's prediction is much more optimistic than the 3.8% growth rate predicted by the Bank of Israel. Conversely, the Bank of Israel is more optimistic than Bank Leumi about 2012, predicting 4.5% growth, well above Bank Leumi's estimate. The Ministry of Finance predicts 4.8% GDP growth in 2011 and 4% in 2012, and the Central Bureau of Statistics predicts 5% growth.

Bank Leumi says, "Israel's economic situation will be affected in the coming years by the growth rates in leading global markets. In addition to this important factor, the response to the social protests and the government's economic policies will have great importance."

Bank Leumi warns about the high uncertainties caused by the volatility in global markets due to the debt crisis in Europe and budget problems in the US. The bank believes that Israeli domestic demand will be the main economic driver in 2012.

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