CBS forecasts: Israel's economy to grow 4% in 2010

This new estimate was based on seven to nine months of accumulated data. Exports are now forecast to grow 9.1%, compared with an earlier estimate of 13.1%
 
The Central Bureau of Statistics (CBS) said last week that due to expectations of a smaller rise in exports, Israel's economy is forecast to grow 4% in 2010, slightly below a previous estimate of 4.1%.
 
The CBS said its new estimate was based on seven to nine months of accumulated data. It also revised second-quarter growth to an annualized 4.5% from 4.6%. First quarter growth was lowered to 3.7% from 3.8%.
 
Exports, which comprise more than 40% of Israel's economic activity, are now forecast to grow 9.1% in 2010, compared with an earlier estimate of 13.1% and a 12.5% drop last year.
 
The CBS also noted that consumer spending is projected to grow at 4.6% this year after a 1.7% rise in 2009. Investment in fixed assets is predicted to rise 6.2% after a 5.8% decline last year.
Israel's central bank also expects growth of 4% in 2010 and a slower 3.8% growth rate in 2011. Israel faces uncertainty due to weakness in the economies of the United States and Europe.