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October 11, 2018 10:16 am

IMF Projects Israeli Economy to See 3.6 Percent Growth in 2018

avatar by Israel Hayom / JNS.org

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Bank of Israel chief Karnit Flug speaks at a press conference in Jerusalem on March 28, 2018, during the presentation of the Israel bank’s annual report. Photo: Hadas Parush/Flash90.

JNS.org – The Israeli economy will have grown by 3.6 percent by the end of 2018, with inflation of 0.9 percent and an all-time low of 3.9 percent unemployment, the International Monetary Fund reported on Tuesday.

The IMF also expects that Israel will not raise interest until next year and that for 2019 inflation will remain at a low rate (1.3 percent), and the country’s Gross Domestic Product will stand at 3.5 percent. According to current projections, only in 2021 will inflation in Israel reach 2 percent, the middle of the goal inflation rate set by the Bank of Israel.

However, it appears that for the first time in years, Israel might surpass its target deficit, and the Finance Ministry has been given three months to address the situation. If the Treasury fails to rein in the growing deficit, the overspend will be noted in the next round of international financial reports.

According to the IMF, the Iranian economy will continue to deteriorate due to new sanctions imposed by US President Donald Trump.

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By the end of 2018, the IMF reports, the Iranian economy will have grown by 1.5 percent, but the country’s inflation will have ballooned to 29.6 percent. Next year Iran is expected to see negative growth of -3.4 percent, and inflation is projected to increase to 34.1 percent.

The IMF reports that Turkey’s economy is also in trouble. While for 2018 the country’s economy will see 3.5 percent growth, inflation will have climbed to 15 percent. Next year, Turkey’s economic growth will grind to a near halt of 0.4 percent with inflation expected to increase to 16.7 percent.

Meanwhile, the US economy is improving. By the end of 2018, the economy will have grown by 2.9 percent, but Trump’s trade war will give the US economy growth of only 2.5 percent in 2019, with inflation of 2.1 percent.

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