OECD sees strong Israel growth but cuts global forecast
Growth: Shutterstock - Pushish images
CPI up 0.5% in October as housing prices fall
CPI up 0.5% in October as housing prices fall
GDP growth will remain strong in Israel at 4.8% in 2022 and 3.4% in 2023, the OECD predicts.
The OECD has cut its forecast for world growth for 2022 from 4.5% to 3%. But according to the OECD, GDP growth will remain strong in Israel at 4.8% in 2022 and 3.4% in 2023. The forecast for Israel is only slightly down on its most recent forecast of 4.9% in 2022 and 4% in 2023. Israel's Ministry of Finance remains more optimistic and forecasts 7% GDP growth in 2021.
On its gloomier global forecast the OECD said, "The invasion of Ukraine and the closing of main cities and ports in China due to the policy of zero tolerance to Covid has given a new set of shocks to markets."
On Israel, the OECD said that the tech sector is expected to strengthen with growing exports and investments in the industry, if at a slightly lower rate than in previous years. In addition, the Israeli employment market is recovering and continues to strengthen consumption. The OECD report also points out that inflation in Israel is rising relatively slowly and will only slightly climb above the annual inflation target range of 1%-3% of the Bank of Israel.
Published by Globes, Israel business news - en.globes.co.il - on June 8, 2022.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.
Growth: Shutterstock - Pushish images