Haaretz reports: Israel’s economy is set to grow at an annual pace of more than 3% through 2019 thanks to natural gas development and higher wages, but the continued increase in housing prices poses a risk to the country’s banks, the Organization for Economic Cooperation and Development said in a report released Tuesday.
The OECD trimmed its economic-growth outlook for Israel to 3.1% for this year from a previous 3.2%, but it said the pace would pick up to 3.5% next year, up from a previous 3.3% forecast, and would expand at a 3.3% rate in 2019.
“Domestic demand will be supported by accommodative fiscal and monetary conditions, the development of new gas fields and higher wage increases due to the persistence of low unemployment. With the somewhat stronger external environment, exports are also picking up as the shekel has stabilized at least temporarily,” the OECD said.
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