Stanley Fischer says Iran Affair Has Little Effect on Israeli Economy

Regarding the Israeli economy, Fischer stated “we recovered from the global economic crisis very swiftly & we have grown at a rate of close to 5% in the past few years.”

 

At a press conference in Tokyo on Thursday for the annual World Bank-IMF meeting, Israeli central bank head Stanley Fischer said that security threats, including the possibility of a conflict with Iran, have a small effect on Israel’s economy, which he called “good but not in excellent shape.”

Stanley Fischer, Governor of the Central Bank of Israel. – Photo: wiki commons.

“I’m frequently asked about the influence of the security situation on the economy including the tension with Iran,” Fischer said. “There is a certain effect felt in the stock market in a particular way, but my feeling is that if there is an impact, then it is small.”

Fischer noted that while Israel’s unemployment level is at a healthy rate, somewhere between 6% and 7%, a global economic drop will drive Israeli exports downward and bring the country’s 2013 GDP rate of growth to 3%, which is relatively low compared to the 5% growth seen in recent years.

Regarding the Israeli economy, Fischer stated “we recovered from the global economic crisis very swiftly and we have grown at a rate of close to 5% in the past few years. This year we are in a slowdown, and we will only grow by 3.3% in 2012 and the forecast for 2013 is 3% growth. A major part of the slowdown stems from the global slowdown and a fall in exports.”

Formerly the chief economist at the World Bank, Fischer became Governor of the Bank of Israel in 2005.

 

View original the algemeiner publication at: http://www.algemeiner.com/2012/10/11/fischer-iranian-threat-had-little-effect-on-israeli-economy/

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