Boston, MA -- (SBWIRE) -- 05/02/2014 -- Political risks remain elevated, despite a reduced likelihood of an attack on Iran and Syria. In particular, spillover effects from the civil war in neighbouring Syria remain high, and investor confidence may be tempered as a result.
We project real GDP growth in Israel to come in at 3.2% in 2014 and 3.5% in 2015, from estimated growth of 3.3% in 2013. Despite the beginning of natural gas production in the Tamar gas field in H113, the economy will remain in a soft patch, with fiscal austerity hitting consumer demand in 2014.
Major Forecast Changes
We project consumer price inflation (CPI) averaging 1.6% and 1.9% in 2014 and 2015 respectively, from 1.5% in 2013. Relatively modest inflationary pressure will allow the Bank of Israel (BoI) to keep interest rates low, which we forecast to come in at 0.50% at end-2014, from our previous forecast of 0.75%.
View Full Report Details and Table of Contents
Key Risks To Outlook
House prices in Israel have risen rapidly in recent years, raising concerns that a bubble has formed in the property market. However, an increase in supply, coupled with macroprudential measures on the part of the government designed to bring down prices, have seen the market cooling in the past quarters. As a result, a sharp drop in prices is unlikely at this stage.
About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Country Reports research reports at Fast Market Research
You may also be interested in these related reports:
- Chile Business Forecast Report Q2 2014
- Brazil Business Forecast Report Q2 2014
- Trinidad & Tobago Business Forecast Report Q2 2014
- Hungary Business Forecast Report Q2 2014
- Croatia Business Forecast Report Q2 2014
- Russia Business Forecast Report Q2 2014
- Canada Business Forecast Report Q2 2014
- Albania Business Forecast Report Q2 2014
- Lithuania Business Forecast Report Q2 2014
- United States Business Forecast Report Q2 2014