( Israeli economy -globserver) The Israeli economy is likely to continue to grow at a moderate pace, while the strong increase of mortgage deficit and the rise of housing prices pose risks. Meanwhile, a new round of peace talks with the Palestinians is not obvious under a new government that is dominated by nationalists and ultra-Orthodox parties.
Sourced through Scoop.it from: globserver.cn
Israel’s economy grew by 3.4% in 2013 and 2.8% in 2014, which are moderate increase rates by recent Israeli standards. In both years, increase was primarily driven by private consumption (see figure 1). Private consumption is likely to remain the major driver of increase in 2015, as inflation has remained low and unemployment stood at a historically low level of 5.4% in the initial quarter of 2015. However, a weakening of the housing market (see key development 2) could lower consumption increase.