FICC anticipates 6% business product growth in 2005

18 Oct '05

2 min read

The Federation of Israeli Chambers of Commerce (FICC) predicts 4.1 percent GDP growth and 6 percent business product growth in 2005, in a macroeconomic survey published in advance of the 45th General Assembly of the Tel Aviv Chamber of Commerce on September 20, 2005.

The Chamber of Commerce also predicts $17,400 GDP per capita this year. A breakdown of growth by sector indicates that the trade and service sector has the fastest growth of 6.0 percent in the first half of 2005, compared with 1 percent growth in industry and high-tec.

Economic data for the first half of 2005 indicate expansion in the business sector and in economic activity. Private consumption and export of goods and services will drive growth in 2005 and 2006, said President of the Chamber of Commerce Uriel Lynn.

Private consumption is expected to grow by 4.2 percent in 2005, after rising 5 percent in 2004. The increase comprises 4 percent growth in current private consumption (such as food and clothing), and 10 percent growth in consumption of durable goods.

The Chamber of Commerce predicts 2 percent growth in export in 2005, slower growth compared with 2004, due to slowing international trade, rising interest rates in the US and rising oil prices. The Chamber of Commerce also predicts 7 percent growth in imports of goods and services.

The Chamber of Commerce predicts that Israel's unemployment rate will fall to 8.7 percent this year, and a net 55,000 business sector jobs will be created to total of 1.66 million. 50,000 of these jobs will be in trade and services and only 5,000 in industry.

FICC - The Federation of Israeli Chambers of Commerce - is one of Israel's largest business organizations. With its finger on the pulse of the country's economy, the Federation is regarded as one of the most influential and most dynamic organizations of its kind in Israel. Strictly non-profit, non-political and non-partisan, FICC is dedicated to a market economy and free enterprise.

The Federation of Israeli Chambers of Commerce

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