US investment bank Morgan Stanley today raised its growth forecast for Israel. A report by analyst Tevfik Aksoy entitled “Israel: Macro Smile – Say Cheese” began “Without doubt the Israeli economy remains one of the robust and well managed among both the developed and the emerging market economies.”
The report continued, “Having shown an excellent track record in weathering the most recent crisis via timely monetary and fiscal policy responses, the country earned well deserved respect and confidence among global investors.”
After visiting Israel and meeting with Bank of Israel and other economic officials, Morgan Stanley said it had come back with positive impressions and is raising its growth forecast to 4.8% for both 2011 and 2012 from its previous growth forecast of 4.3%.
On the downside Morgan Stanley noted that house prices remain a concern due to supply-side constraints, and also warned against possible repercussions from the Palestinian plan to seek UN recognition for its independence in September.