UBS raised its forecast of Israel's growth in GDP for 2010 to 3.5%

The UBS analyst affirmed his forecast that Israel's GDP would grow 3.8% in 2011, a projected rate in line with the consensus of 3.9%
 
UBS, Switzerland's largest bank and one of the biggest financial institutions in the world, raised last week its forecast of Israel's growth in gross domestic product for 2010 to 3.5% from 3%.
 
UBS's analyst Reinhard Cluse noted that the new growth figure is well above analysts' 3.3% consensus. Inflation-adjusted GDP rose by "an encouraging" 4.9% in the final three months of 2009 from the third quarter and by1.7%  from the year-earlier fourth quarter.
 
The rise in growth came "thanks to good momentum in household consumption and exports and continuous support from government consumption”.
 
The analyst affirmed his forecast that Israel's GDP would grow 3.8% in 2011, a projected rate in line with the consensus of 3.9%.
 
Cluse noted that in light of "sound macroeconomic and structural fundamentals, the Israeli economy appears well-positioned to recover from the global crisis and return to respectable growth rates earlier than many Europe-Mideast-Africa economies”.