Bar-On: Economic growth for 2009 is expected to reach 3.5%

The Finance Minister noted that the economy grew by some 5.5% in 2007, and is expected to grow by further 4.2% in 2008
 
Finance Minister Ronnie Bar-On told the cabinet last Tuesday that Israel's economic growth for 2009 is expected to reach 3.5%.
 
In a detailed economic briefing the Finance Minister noted that the economy grew by some 5.5% in 2007, and is expected to grow by further 4.2% in 2008.
 
At a briefing with economic reporters after the cabinet meeting, Bar-On said the country's budgetary flexibility was severely limited by financial responsibilities and commitments made by past governments.
 
Bar-On noted that while in the past the Government's main economic goal was economic growth, now the government needed to ensure that the growth goes down to sectors of the society where it did not reach in the past.
 
Bar-On emphasized that Israel's economy was strong, but noted that there were weak points and outside influences, such as the current global economic slowdown, as well as security and political instability inside Israel which could have a negative impact on the economy.
 
The Bank of Israel predicted the market will add 3.4% in 2009 – a projection which stands to be updated along with the Bank's projections for 2008, which are at 3.2% - far bellow that of the Finance Ministry.