Bank of Israel: 0.2% negative growth rate in 2009

The Bank of Israel was lowering its forecast from growth of 1.5%. The bank predicts a market slump in the first half of 2009
 
Israel’s economy will probably shrink by 0.2% this year, the central bank said last week, lowering its forecast from growth of 1.5%.
 
The bank predicts a market slump in the first half of 2009, followed by the market stabilizing and then resuming its growth, which according to assessments should be back on track by mid 2010. The Bank of Israel revised its projection following the continuing financial crisis and several negative developments in world markets.
 
It said the contraction probably began in the fourth quarter of 2008 and that growth may resume in the second half of this year. 
 
The Bank of Israel also released its unemployment projection for 2009, updating it to 7.6%. The government deficit is expected to be 4% of the gross national product (GNP); but nonetheless, the national surplus is not expected remain unfazed, due to the improvement in terms of trade.