Bank: Labor threat to Israel’s fiscal policy
http://www.ynetnews.com/articles/0,7340,L-3189229,00.html
Deutsche Bank’s analysts say strong showing in elections by Amir Peretz-led Labor party poses biggest threat to Israel’s fiscal policy; party’s candidate for finance minister in response: ‘Deutsche Bank showing complete ignorance regarding Israel’
The biggest threat to Israel’s fiscal policy would be a strong showing by Amir Peretz’s Labor party in the upcoming general elections, Deutsche Bank analysts said in a recent report.
‘Israel’s fiscal policy will persist under a Kadima – led government,” the report said.
The bank’s analysts estimate that local investments will remain at a high level and that exports will continue to contribute to the country’s growth rate, which is expected to reach about 4.5 percent in 2005. However, Israel’s growth rate will drop to an estimated 4.1 percent in 2006, according to the bank.
Private consumption will continue to gain a boost from the tax cuts, and the unemployment rate is expected to drop as well, the report said.
Deutsche Bank’s economists estimate that the 2006 inflation rate will stand at 1-3 percent, adding that the shekel will continue to gain strength against the dollar until the end of 2006.
Professor Avishai Braverman, Peretz’s candidate for finance minister, said in response to the report, “Unfortunately, Deutsche Bank is showing complete ignorance regarding Israel. The Labor party is about to present a budget that is based on the models of Clinton and Blair; models that are fiscally responsible, but with a different set of priorities than that of the Sharon-Netanyahu government, which is eroding the middle class and increasing the poverty level.”
(12.23.05, 17:38) -- Bryan Atinsky Editor, News from Within e-mail: bryan at alt-info.org Tel: (972)2-624-1159 P.O. Box 31417, Jerusalem 91313 http://www.newsfromwithin.org http://www.alternativenews.org