Macroeconomic Forecast Israel

September 2004 | Macroeconomic Forecasts

We are forecasting real GDP growth of 1.9% for 2004, yet there is some upside risk to this and we are likely to amend our forecast slightly. However, despite progress on the fiscal front, economic output remains slow. Although manufacturing production has risen, there has not been the sharp rise that many were predicting earlier this year. Meanwhile, most construction indicators for Q1 show a fall compared to the same period in 2003, suggesting that the sector has yet to come out of its long recession. In addition the export recovery has also proved slow, and the latest data available for exports - June and July - show a 0.3% and 0.6% y-o-y decline respectively.

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