Israel is likely to continue experiencing an economic boom in 2020, with low unemployment rates and a stronger currency, Ofer Klein, head of the Economics and Research department and Harel Insurance and Finance, told Israel Hayom Monday.
Klein said he believes Israel's economy will grow by 3% in 2020 and exports will increase by an estimated 5%. Imports will likely improve by 3.4%, he said.
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The government, he said, will have to raise some taxes, while the Bank of Israel will likely keep the key interest rate at 0.1%, he said, noting this would be in line with the policy of other central banks worldwide.
Still, the government's fiscal policy is expected to be less expansive due to the high deficit, which would have some negative impact on growth, he said.
According to Klein, the job market is expected to stay solid for the most part, with unemployment noting only a slight increase from 4% to 4.2%.
"Israel's economy will continue to grow almost according to its potential growth rate," Klein said.
"The low unemployment rate, the continued rise in the average wages, the fact that the shekel is likely to strengthen even more, and low interest rates will continue to boost private consumption, as well as drive growth in Israel throughout 2020.
"At the same time, we expect an increase in the export of services led by high-tech industries. We also see the continued growth of inbound tourism," he noted.
