Bank Governor Stanley Fischer
צילום: אלכס קולומויסקי
Israel forecasts reduced economic growth in 2008
Bank of Israel governor says no avoiding affect of global trends on local market. 'After the crisis we shall enjoy an even stronger economy,' says Governor Fischer
Israel's central bank on Tuesday forecast the country's 2008 economic growth at 3.2 percent, compared to 5.3 percent in 2007, but officials said they did not see Israel entering a recession.
Presenting the Bank of Israel's 2007 report, US-trained governor Stanley Fischer told reporters that the fall was due to the general sluggishness of world economies, particularly that of the United States.
''The Israeli economy is dealing in the current period with a very complex situation,'' Fischer said. ''There is no doubt that the Israeli market will be affected by the slowdown in world growth.''
An extract of the report published by the bank said a budget deficit of 1.5 percent of gross domestic product was foreseen for 2008, compared to the balanced budget of 2007.
''We shall manage to grow, albeit at a slower pace, and after the crisis we shall enjoy an even stronger economy,'' Fischer said.
Last month Fischer, a former Wall Street banker, cut the Bank of Israel's benchmark interest rate by half a percentage point to 3.25 percent and ordered a large-scale purchase of dollars. Both moves were aimed at braking the sharp slide in the value of the American dollar against the Israeli shekel.
