April 17 2018
According to a revised global economic forecast by the International Monetary Fund (IMF) published today in Washington DC, Israel’s economy will grow 3.3% in 2018 and 3.5% in 2019. The IMF predicts inflation will rise from 0.2% in 2017 to 0.7% in 2018 and 1.3% in 2019.
The IMF believes that unemployment will remain stable at 4.2% over the next two years, while the balance of payments will continue to be positive, with surpluses of 2.6% of GDP in 2018 and 2.7% in 2019.
The IMF’s optimistic forecast for the Israeli economy fits in with its global forecast, which predicts that the global economy will grow by a fairly rapid 3.9% both this year and next year.
According to the IMF, expansion of investment in many economies accelerated growth to over 4% in the second half of 2017, the highest figure since 2010. Following the next two years, however, the weight of negative processes and factors will rise and be reflected in lower growth. The IMF expects the current expansionary monetary policy to be abandoned in most economies, while the force of fiscal expansion will dissipate. At the same time, the clear slowing of the increase in productivity and the aging population will have a negative impact on the growth rate.