Protecting economic achievements – Israel 2010

Israel’s economic progress, despite a global recession, has been well documented and described. The economy is expected to grow at 4% in 2010 for all the hangover of the credit crunch and troubles in key European export markets.

And there will be exciting times ahead. The impact of revenues from new energy resources will be enormous. Infrastructure projects like the education, transportation and health budgets can expect a major boost over the forthcoming decade.

But, and there is always a but, nothing is perfect. Stanley Fischer, Governor of the Bank of Israel, has declared war on the housing market. With increasing noise over the past year, his team has let it be known that they are not prepared to see real estate prices rise and rise and rise.

To date, the preferred weapon of attack has been the rate of interest. They have just been raised to 2%, and further changes are in the pipeline.

The downside has been the effect of the shekel, which has strenthened significantly against the US dollar and other countries. All this means that exporters are suffering. Profits levels are under threat.  

Fischer knows that the stakes are high. In parallel, he has publicly announced that he will continue to buy dollars on the open market. After all, exports make up 40% of Israel’s economic activity.

Anybody understand why the Israeli government cannot release land for new housing, which would quickly rectify the situation?

Advertisements
Explore posts in the same categories: Business, Israel

Tags: , , ,

You can comment below, or link to this permanent URL from your own site.

2 Comments on “Protecting economic achievements – Israel 2010”

  1. ul fire wall Says:

    I am really grateful to have the information from this blog.I liked the blog as it has been written,the information i got from here.This is a good information i got from here.I really liked it and this information is worth remembering.

  2. potenzmittelshop Says:

    Super-Duper site! I am loving it!! Will come back again – taking you feeds also, Thanks.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: