Israel economy to grow 4 pct in 2010 -stats bureau

Published 10/17/2010, 07:48 AM
Updated 10/17/2010, 07:52 AM

JERUSALEM, Oct 17 (Reuters) - Israel's economy is forecast to grow 4 percent in 2010, slightly below a previous estimate of 4.1 percent, due to expectations of a smaller rise in exports, the Central Bureau of Statistics said on Sunday.

The economy grew 0.8 percent in 2009.

The bureau said its new estimate was based on seven to nine months of data. It also revised second-quarter growth to an annualised 4.5 percent from 4.6 percent. First quarter growth was lowered to 3.7 percent from 3.8 percent.

Israel's central bank also expects growth of 4 percent in 2010 and a slower 3.8 percent growth rate in 2011, as Israel has rebounded well from a brief recession but still faces uncertainty due to weakness in the United States and Europe.

Exports, which comprise more than 40 percent of Israel's economic activity, are forecast to grow 9.1 percent in 2010, compared with a prior estimate of 13.1 percent and a 12.5 percent drop last year.

Consumer spending is projected to grow 4.6 percent this year after a 1.7 percent rise in 2009. Investment in fixed assets is predicted to rise 6.2 percent after a 5.8 percent decline last year. (Reporting by Steven Scheer; Editing by Will Waterman)

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