Bank of Israel forecasts: economy growing 4% in 2005

Dr. Michel Strawczynski, Bank of Israel Research Department deputy director predicted last week that Israel's economy will grow by 4% in 2005, and business product will grow by 5%, slightly less than in 2004 In its latest economic forecasts, the Bank of Israel predicted that GDP, per capita, will rise by 2.2% in 2005, after rising 2.6% in 2004.
 
The standard of living (private consumption per capita) will rise by 2.4%, after rising 3% in 2004.
 
Dr. Strawczynski noted that the recovery in economic activity would cause the unemployment rate to fall faster than in previous years.
 
The Bank of Israel's unemployment forecast show that the average unemployment rate in 2005 will be around 9.5%, the lowest level since the outbreak of the intifada in September 2000. The unemployment rate was 10.4% in 2004 and 10.8% in 2003.
 
The Bank of Israel also predicted that private consumption will rise in 2005 by 4.1%, exports, excluding diamonds, will grow by 7%, and imports will grow by 6.4%.