A report released by the U.S. investment bank Morgan Stanley, cuts Israel's growth forecast in 2014 from 3.4% to 3%, stating the shekel's revaluation.
However, the U.S. investment bank praised the Israeli economy by raising the country's growth in 2013 from 3% to 3.8%. "Without doubt the Israeli economy remains one of the robust and well managed among both the developed and emerging market economies," the report noted. “
The Israeli currency has appreciated significantly and poses a risk to growth,”. The bank added that “High foreign exchange reserves and a current account surplus with a fairly stable macro picture suggest that the currency will remain strong.”
"Having shown an excellent track record in weathering the most recent crisis via timely monetary and fiscal policy responses," the report said.
The country earned well deserved respect and confidence among global investors."
