The Economist Intelligence Unit - Israeli economy is generally stable and strong

"The Economist Intelligence Unit" (EIU) published last week its latest survey of the Israeli economy.
 
According to the survey the Israeli economy in 2005 is generally stable and strong due mainly to rising exports and inflow of rather large foreign investment.
 
The EIU noted that level of prices in Israel and the balance of payments will remain stable. The EIU noted that stability in prices will enable the Bank of Israel to keep low inflation (The government inflation target for 2005 is 1-3%).
 
The EIU added that due to its stable economy, Israel's economic recovery will continue next year, accordingly private consumption, exports, investment and real wages will rise along with government spending. The EIU's prediction concerning investment is in line with predictions made last week by the Bank of Israel which predicted that foreign investment in Israel will reach a record $15 billion in 2005, assuming that the current pace of foreign investment continues. Bank of Israel noted that global economic recovery and the improvement in the Israeli economic fundamentals and geopolitical circumstances supported long-term foreign investment in Israel in 2004.
 
The EIU predicted in its survey that the unemployment rate will fall much faster than anticipated, and the government's budget deficit will fall to within the government target.
The Economist Intelligence Unit is the world's foremost provider of country, industry and management analysis.
 
The Economist Intelligence Unit is a leading research and advisory firm with more than 40 offices worldwide. Its extensive international reach and unfettered independence makes the EIU most trusted and valuable resource for international companies, financial institutions, universities and government agencies.