Israel’s Economy Under Caution

Also in October, Globes [online], the English version of an Israeli business daily, reported: “The Bank of Israel also listed several other considerations that led to its decision, including expected lower inflation as a result of falling commodity prices due to the global economic slowdown.”

Globes also reported that UBS AG—the world’s largest manager of private wealth assets and the second largest bank in Europe—cut their 2009 growth forecasts for Israel to 2.2% from 3.1%. UBS analysts “also expect that a driver of economic growth in recent years’ domestic demand will fall victim to unemployment, which they expect to rise following several years of decline.” Globes reported. On a very somber note, UBS said they expect Israel’s bank to suffer more than other companies from the economic slowdown: “We now forecast zero loan growth in 2009 (previously 2–3%).”

By Ron Ross, BFP Israel Mosaic Radio Host