Deutsche Bank analysts revised last week their global economic growth forecast upward, for the first time since the beginning of the economic crisis, and now see global economic growth of 2.5% in 2010, compared with their previous estimate of 2% for that year.



Deutsche Bank analysts see Israel's GDP growing 2% in 2010, after falling 1.1% in 2009. They expect Israel's inflation, as measured by the Consumer Price Index (CPI), to rise 2.1% in 2009, and at a slower rate of 1.9% in 2010. In contrast, the Bank of Israel's 2010 forecast sees 1% economic growth.



As for other countries in the region Deutsche Bank sees Egypt's GDP growing 2.9% in 2009 and 5.4% in 2010, Romania's GDP falling 3.9% in 2009 and rising 3.5% in 2010, Kazakhstan GDP falling 2.2% in 2009 and rising 3.3% in 2010, and Russia's GDP falling 4.4% in 2009 and rising 1.8% in 2010.



Deutsche Bank noted that its higher global growth forecast is entirely based on stronger expected growth in industrial countries with growth next year now forecast to reach 1% compared to its previous call of 0.3%.



The bank also sees two factors pushing for stronger economic growth - a better outlook for investment growth, and better export growth.