Tel Aviv (Xinhua + Diplomat.so) -- Israel's Ministry of Finance estimates that Israel's GDP will expand 4.6 percent in 2021, according to an annual report issued by the ministry on Sunday.
The 2021 forecast was given according to a main scenario, which assumes control of the pandemic during the first half of the year, and end of health restrictions by the beginning of the second half.
The ministry also expects a contraction of 3.3 percent in Israel's GDP in 2020. It noted that this decrease is low in a global comparison, due to a relatively slight impact of the crisis on the Israeli exports.
In addition, Israel's technology sector recorded prosperity despite the crisis, with an increase in exports of hi-tech services along with high foreign investments, the report said.
However, the Israeli labor market was severely affected by the crisis, as well as private consumption, which fell by 10.2 percent in the first three quarters last year.
The report also predicts a 0.3-percent increase in Israel's annual inflation in 2021, compared with a 0.6-percent drop in 2020.