IMF Cuts Growth Forecast for Israeli Economy

YERUSHALAYIM -

The International Monetary Fund has again cut its forecast for the growth of the Israeli economy. The cut this time is in line with a general cut in the expected growth of the world economy, the IMF said.

The IMF is predicting that the Israeli economy will grow by an average of 3.1% a year over the next two years, compared to a previous estimate several months ago of 3.3% annual growth rate during the period. In April, the IMF had predicted a 3.5% growth rate. Both times, the growth rate prediction cut was made in tandem with the weakening of the world economy. The Bank of Israel also recently cut its prediction for the period to 3%, for the same reason.

The IMF recently predicted that the world economy would grow 3% over the next two years, lower than the previous prediction of 3.2%. Six months ago, the IMF was predicting an average annual growth rate of 3.6% over the period. According to IMF officials, without recent slashing of interest rates by governments around the world, the growth rate would likely be a half a percent lower.