A new report by the International Monetary Fund offered a favorable forecast for Israel's economic growth in 2015, pegging it at 3 percent amid otherwise conservative projections for the global economy. The IMF's projections attributed the sluggish growth in Israel's economy to the overall slowdown in Europe's economy, as well as to Operation Protective Edge, waged in the Gaza Strip last summer. The projections coincide with the growth forecast released by the Bank of Israel on Dec. 29. "Global growth is forecast to rise moderately in 2015-16, from 3.3 percent in 2014 to 3.5 percent in 2015 and 3.7 percent in 2016, revised down by 0.3 percent for both years relative to the October 2014 World Economic Outlook," the IMF said Tuesday in a statement posted on its website. Only four nations' projections exceeded Israel's growth forecast: China's economic growth in 2015 was set at 6.8 percent, followed by India (6.3 percent), the United States (3.6 percent) and Mexico, whose economy is projected to grow by 3.2 percent. The IMF offered conservative projections for some European countries, saying Ireland's economy will likely grow by 3 percent, followed by Britain (2.7 percent) and Spain (2 percent). Low growth rates were projected for Germany, whose economy is expected to grow by only 1.3 percent, followed by France (0.9 percent), Japan (0.6 percent), Italy (0.4 percent), and Brazil, whose economic growth this year was set at 0.3 percent. Saudi Arabia's economy also enjoyed a favorable forecast of 2.8 percent growth. Favorable predictions were also made for Iraq's economy (+1.5 percent), and the Iranian economy, which is projected to grow by 2.2 percent over the international community's agreement to mitigate some of the economic sanctions imposed on Tehran over its nuclear program. Russia's economy, however, is projected to shrink by 3 percent over weakening ruble rates, as well as the drop in oil prices. "The weaker global growth forecast for 2015-16 underscores the need to raise actual and potential growth in most economies, This means a decisive push for structural reforms in all countries, even as macroeconomic policy priorities differ," the IMF said.
