Diamond News

Stanley Fischer, Israel's central bank chief, predicted last Wednesday, while presenting the Bank's annual report on Israel's economy that the country's economy would grow 3.7% this year, up from his previous prediction of 3.5%.

He also forecast unemployment would fall to 7% this year, down from 7.4% in 2009. Fischer noted that in contrast to the slumping U.S. and European markets, Israel weathered the global financial crisis "relatively well" and ended 2009 with modest economic growth and declining unemployment. Israel experienced slight economic growth last year. He credited Israel's strictly supervised banking system with limiting the scope of the crisis that devastated Western economies.

The International Monetary Fund (IMF) said in a report last week that Israel’s economy may expand 3.2% this year, raising its forecast as increased exports help the country recover from recession.

The IMF prediction exceeds its Jan. 25 estimate of Israeli gross domestic product growing 2.5%.

The IMF cited Israel as one of the economies recovering fastest from the global recession.

The Organisation for Economic Cooperation and Development forecasts between three and 3.5% growth for Israel in 2010. The Bank of Israel GDP figure for 2009 exceeded the OECD's estimate of 0.5%.