IMF sees Israeli economy at near standstill in 2009

The IMF has a bleak projection for the Israeli economy, predicting it would see a negative growth rate of 0.2%
 
In a grim assessment of the world economy, the International Monetary Fund (IMF) slashed its 2009 forecast to a slight 0.5%, the weakest year since World War Two. IMF chief economist Olivier Blanchard said the world economy had taken a turn for the worse over the past three months, with global output and trade falling dramatically.
 
The IMF's outlook was especially bleak for advanced nations such as the United States and in the euro area, whose economies are seen contracting by 1.6% and 2%, respectively. The sharpest decline will be in Britain, whose economy is likely to contract by 2.8% this year, the IMF said. Japan's economy is expected to shrink by 2.6% in 2009. The IMF also predicts world trade to slip from the initial projection of a 2% growth to a 2.8% drop.
 
The IMF has a bleak projection for the Israeli economy, predicting it would see a negative growth rate of 0.2%, similar to Bank of Israel recently published projections. The projections are based on a report filed by an IMF mission who visited Israel at the end of 2008. The financial crisis sweeping the United States and Europe, it said, "Is likely to translate into a period of financial weakness and major risks for Israel."