IMF forecast 2.9% growth for Israel this year and 3.2% for 2013

The inflation rate projected for the two year period stands at 2%
 
On Monday, the IMF lowered its outlook for the world economy and warned that unless leaders in Europe and the United States take additional action, a further slowing is in the offing.
 
The IMF cut its 2013 forecast for global growth to 3.9% from the 4.1% it projected in April, trimming projections for most advanced and emerging economies. It left its 2012 forecast unchanged at 3.5%. The forecast was delivered in Tokyo at the Annual Meetings of the IMF and the World Bank Group, attended by finance ministers and central bank governors from 200 countries.
 
In a mid-year health check of the world economy, the IMF said emerging market nations, long a global bright spot, were being dragged down by the economic turmoil in Europe. It said a drop in exports in these countries would combine with earlier policies meant to prevent overheating and slow growth more sharply than hoped. For Israel, the fund projects 2.9% growth for this year and 3.2% for 2013. It sees inflation at 2% for each of the two years, with unemployment at 7% in both 2012 and 2013.
 
The revised growth forecast in the October 2012 World Economic Outlook, is substantially worse than the April forecast, including reduced forecasts for peripheral economies in Europe, Asia, and Latin America in 2013. The outlook predicts that the euro area will have minus 0.4% growth in 2012, with deep recessions and double-digit unemployment rates in Italy, Spain, Portugal, and Greece. The outlook predicts 2.1% growth for the US in both 2012 and 2013.