Rapid growth forecast for Israel.(Brief article)

The Bank of Israel (BOI) says that the country's economy is "back to rapid growth," following an annualized GDP expansion of 7.3 percent during the final quarter of 2006. In its report, titled, "Recent Economic Developments," published on May 9, 2007, the BOI also said that two specific first quarter 2007 indicators confirmed the rapid growth scenario. Those two indicators are favorable showings from the sales revenue index and manufacturing production.

Israel's Consumer Confidence Index (CCI) supported the BOI's positive take on the economy. The CCI rose from 84 points in March 2007 to 85 points in April 2007 after gaining 3 points each in February 2007 and January 2007. Israel's CCI is prepared by Globes (Rishon Le-Zion), the Israeli business daily newspaper, and was published on May 3, 2007.

Globes said, "The Consumer Confidence Index has been rising despite the political storms and constant reports about police investigations against top government and coalition figures." The CCI declined during the last half of 2006, but began to rise again early in 2007. Most of the 2007 increase in consumer confidence was attributed to positive consumer assessment of Israel's current economic situation. Israeli macroeconomic performance has been positive for some time, but only now is affecting the CCI.

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