Bar-On: domestic economy set to slow due to global downturn

The minister criticized lawmakers for approving "private member bills. A slowdown is expected and the economy is forecast to grow by 4.2% in 2008
 
Israeli Finance Minister Roni Bar-On said on Wednesday that although the domestic economy remained strong, it was set to slow due to the global economy downturn.
 
In a business conference held in Eilat, Bar-On said that "The global economic crisiswill undoubtedly influence Israel's economy even if it is only a small amount due to its advantages".
 
He added that "Israel's economy is facing a number of complex challenges; growing inflation, high oil prices, the strength of the shekel against foreign currencies, the weakening of the dollar, the volatility in the capital markets and in the export sector. All of these strengthenthe worries about the economy and raise the possibility of a slowdown in the growth rate."
 
Israel's economy grew by at least 5% annually from 2004 through 2007 and at an annualised 5.4% rate in the first quarter. But a slowdown is expected and the economy is forecast to grow by 4.2% in 2008.
 
Bar-On added that as a result of the slower economic growth and political uncertainties, Israel must continue to maintain responsible fiscal policies.
 
The minister criticized lawmakers for approving "private member bills" that will have negative effect on the budget, will increase state spending and will make it harder to stick to fiscal targets.