The chief economist of the Swiss investment bank UBS predicted last week that Israeli economy will grow at a rate of 2.7% in 2010; GDP to drop 0.8% this year.

The chief economist, Reinhardt Klaus, released last week a very optimistic review about the Israeli economy.

The Swiss investment bank believes that Israel will resume its economic growth on the basis of a consecutive quarterly comparison as early as this quarter.

The bank's economists maintain their forecast for the domestic product, predicting a 0.8% fall in the production of goods and services in Israel, compared to the Bank of Israel's forecast of a 1.5% drop.

Klaus noted that the 2010 forecast made by the bank was for a 2.7% growth compared to an average predicted growth of 1.6% in the emerging markets, which include the State of Israel.

UBS also noted that in spite of the economic problems, it estimates that while the world's economies are showing first signs of stability, the Israeli economy will be able to present a bigger and faster growth which will be durable.