Subscribe to Print Edition | Tue., June 24, 2008 Sivan 21, 5768 | | Israel Time: 21:28 (EST+7) web haaretz.com   Back to Homepage Rosner's Domain Diplomacy Defense Jewish World Opinion National Print Edition Car Rental Books Peres Conference Business Real Estate Easy Start Travel Week's End Anglo File

Last update - 13:49 24/06/2008 Fischer: Battle with inflation, recession may have negative effects soon By Ora Koren, TheMarker Tags: inflation, shekel, Fischer Bank of Israel Governor Stanley Fischer, voicing confidence that Israel's economy will successfully contend with economic challenges over the next two years, conceded Tuesday that the simultaneous battle with both inflation and recession may have negative effects soon. Speaking to a meeting of French and Israeli industrialists, Fischer said there was "a very significant slowdown in growth in Israel, the result of things happening abroad. There is a threat of recession, and a threat of inflation, and we must decide the 'dosage' at which to treat inflation, knowing that it is possible that within a short time, our situation in real terms may be more difficult." Fischer told the industrialists, some of them accompanying French President Nicolas Sarkozy on his current visit to Israel, that he was aware of the need to weigh inflation and its short-term consequences on the one hand, with hardships faced by exporters on the other. Advertisement "In the end, central banks the world over must deal with inflation, and we began doing so less than a month ago, raising interest rates by 0.25 percent." Israel's economy is one which is succeeding in growing, as well as one which faces challenges stemming primarily from abroad," he said. "But we intend to maintain discipline in the economy, both fiscal and in terms of inflation ? and I think that we will be able to successfully contend with the challenges of the coming two years." According to Fischer, the strength of the shekel is an outgrowth of foreign investment in Israeli companies, as well as a new phenomenon, that of Israelis halting their practice of investing their capital abroad. "We are in a global financial crisis, and Israelis, rather than sending their money abroad, are bringing it back home." The big change in 2007-2008 has been the stoppage in outward flow of capital since the start of the year. That is a vote of confidence, on one hand, but it has repercussions for the economy as a whole." "We all hear about our having a weak government, but it has succeeded in maintaining a very strong fiscal discipline," Fischer said. Last year, the government balanced its budget, and this year, the ceiling of its deficit will be 1.6 percent of Gross Domestic Product, a figure economists view as good. It is estimated that by year's end, the figure will be 1 percent, consistent with the prediction for 2009. Bookmark to del.icio.us   Justice for Jews London summit focuses on plight of Jewish refugees from Arab states. No place like home Poll: 77% of Israeli Arabs would rather live in Israel than in any other country.   1.   Oh Goody! 14:49  |  Mark Lincoln 24/06/08   2.   To Mark Lincoln 15:55  |  Richard 24/06/08   3.   Hardships force change 19:30  |  Dror 24/06/08   4.   I challenge America and Americans 19:37  |  Dror 24/06/08

Read & React Cabinet to vote Sun. on Hezbollah deal, says wife of abducted soldier Responses: 232 Editorial: We must pay the high price for the return of Gilad Shalit Responses: 86 Gaza truce shaken as four Qassams slam in Negev Responses: 156 Israel monitoring French nuclear deals with Arab world Responses: 40 Poll: 77% of Israeli Arabs would rather live in Israel than in any other country Responses: 201 Rosner's Domain New Guest: Israel should've continued blockade of Gaza Al Hura not working? Tell me something I don't know (WTR) Why do non-Jewish Americans support Israel? Poll: exchange deal with Hezbollah, good or bad? Will we see a record number of Jewish lawmakers? (2) More Headlines 20:59 Cabinet to vote Sun. on Hezbollah deal, says wife of abducted soldier 19:57 Border Policeman dies from self-inflicted shot at Sarkozy farewell 21:06 Gaza truce shaken as four Qassams slam into west Negev 21:12 Olmert: Israel mulling response to renewed Qassam fire 19:50 VIDEO: Two years after his kidnap, U.S. kids read Gilad Shalit's tale of co-existence 20:33 World Wealth Report: People in Israel get richer faster 18:46 Religion is not very important to American Jews 21:21 Knesset approves law allowing property owners to kill invaders 17:39 Ahmadinejad: World leaders behind sanctions must stand trial 12:07 Arab World nuclear race / Who has what, and from where 14:49 Egypt: Gaza crossing will remain shut until Shalit deal reached 18:53 Hamas prisoners freed in West Bank, despite PA pledge to Israel 20:57 Lawyers ask Spanish court to charge 4 alleged ex-guards at Nazi camps Previous Editions Select Day 23 jun 22 jun 20 jun 19 jun 18 jun 17 jun 16 jun 15 jun 13 jun 12 jun 11 jun 10 jun

Special Offers Advertisement Holyland Park Jerusalem Apartment Tower World Class Luxury In the heart of Tel-Aviv The Meier on Rothschild tower Jerusalem of Gold Luxury apartments in Jerusalem's finest location Your vacation starts here Israel Travel Center Guaranteed Lowest Rates Free Hebrew Private Lesson www.iStudyHebrew.com Pardes Institute Summer Sessions http://www.pardes.org.il/ Free the Palestinians from: Corrupt Kleptocracy, Tyrannical Theocracy, Abysmal Anarchy Fattal Hotel Chain Perfectly located hotels on best resorts of Israel. ISRAEL BONDS Build Israel Israel bonds - a multi-purpose way to celebrate Israel's 60th Eldan Rent a Car Israel's leading car rental company offers you a 20% discount on all online reservations Junkyard Junk a car - get free towing nationwide and a tax-deductible receipt

Home | TV | Print Edition | Diplomacy | Opinion | Arts & Leisure | Sports | Jewish World | Underground | Site rules |

Real Estate in Israel | Travel to Israel with Haaretz | Hotels Israel | Restaurants Israel | Tourist attractions Israel | Shops Israel

birthright Israel

Haaretz.com, the online edition of Haaretz Newspaper in Israel, offers real-time breaking news, opinions and analysis from Israel and the Middle East. Haaretz.com provides extensive and in-depth coverage of Israel, the Jewish World and the Middle East, including defense, diplomacy, the Arab-Israeli conflict, the peace process, Israeli politics, Jerusalem affairs, international relations, Iran, Iraq, Syria, Lebanon, the Palestinian Authority, the West Bank and the Gaza Strip, the Israeli business world and Jewish life in Israel and the Diaspora.

© Copyright  Haaretz. All rights reserved