Macroeconomic Forecast Israel

The deterioration in Israel's trade dynamics, particularly the drop in goods exports, will result in a narrowing of the current account surplus over the medium term, which we forecast to fall from US$6,420mn (or 2.8% of GDP) in 2011 to US$4,279 (or 1.6% of GDP) by 2013. Political instability has the potential to reduce services exports and foreign investment inflows, which would cause the current and financial account surpluses to narrow more rapidly than currently expected.

To read the full article, please choose one of the following options: