Stanley Fischer: Exports stable despite strong shekel

"I prefer a strong economy," says Bank of Israel Governor; credits Israel's recovery from recession to cutbacks and job-sharing.

By GALI WEINREB/GLOBES
May 24, 2011 22:44
1 minute read.
Bank of Israel Governor Stanley Fischer

stanley fischer 311. (photo credit: Courtesy)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user uxperience almost completely free of ads
  • Access to our Premium Section and our monthly magazine to learn Hebrew, Ivrit
  • Content from the award-winning Jerusalem Repor
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

“We were surprised that exports remained stable despite the appreciation of the shekel, although it is necessary to say ‘so far,’” Bank of Israel Governor Stanley Fischer said Tuesday at the ILSIBiomed Conference 2011.

“One of the main complaints by the business sector was about the strong shekel,” he said. “But it only goes to show the strength of Israeli exports and its relative weight in the economy. To the complainers, I say that it is not possible to maintain a strong economy with a weak shekel, and I prefer a strong economy, especially when we don’t see the appreciation hurting exports.”

Be the first to know - Join our Facebook page.


Fischer said the gap of 8 percent in favor of imports over exports in 1995 was wiped out within five years, mostly due to hi-tech. This gap was now 5% in favor of exports, he said.

Fischer said Israel had entered the last recession with an unemployment rate of 5.6%, a 20-year low. The unemployment rate had risen to 8% during the recession, compared with expectations of 9%, he said, because the global economic crisis did not strongly affect Israel, and thanks to various cutbacks, job-sharing and other measures by employers to avoid firing employees.

“This made it easier to recover from the recession because there is no need to hire new workers,” he said.

“When Warren Buffett bought Iscar Ltd. in 2006,” Fischer said, “Americans asked me, ‘Aren’t Israelis angry when foreigners buy their best assets?’ No. It never happens. Israelis are very proud that foreigners buy their assets. If you think about acquisitions, you won’t find a more enthusiastic environment. That’s an advantage, in addition to the economic stability and support for investors.

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS