The long-term survival of the five-party governing coalition is threatened by internal ideological differences and public disaffection. The prime minister, Ehud Olmert, remains unpopular. The coalition is now largely held together by the major parties' shared fear of an early election, although Labour may decide to pull out, perhaps by late 2008. Given the domestic political uncertainty, little progress is expected in the peace process. Economic growth will ease in 2008 as US and EU demand weakens, but it will remain healthy, with demand for high-tech exports expected to stay strong and the domestic economy performing robustly. Inflation will pick up compared with the first half of 2007, but will remain comfortably within the target range of the Bank of Israel (the central bank), with a strong New Israeli shekel helping to contain price pressures. The current account is forecast to stay in surplus.