Finance Ministry: 2006 growth could reach 5%

Finance Ministry said last week that economic growth will accelerate through the year despite late passage of the 2005 state budget. According to statement issued last week, 2005 will experience growth similar to that of last year - 4.3%.
 
Israel's gross domestic product will increase this year by 4%, the private sector will grow by 5%, and unemployment will fall to 9.5%, according to the central bank. The bank lifted all its forecasts from earlier estimates in August 2004, when it predicted 3.5% growth and 9.9% unemployment.
 
The treasury expects growth of 4.3% this year, although it said this figure could be accelerated if the government fully implements its economic decisions, including infrastructure investments, structural changes and privatization.
 
Officials of the Ministry declined to predict the outcome of the late budget nevertheless they said that if there are no disruptions, the economy will reach average growth of 5% in 2006, which fully meets the economy's potential for growth.