The Bank of Israel will again cut its growth forecast for 2012 Governor Prof. Stanley Fischer told the Knesset Finance Committee Wednesday. He added that the situation in Europe had improved slightly in terms of decision-making, but warned that if countries quit the Eurozone, "there will be a big mess."
"The Israeli economy is in good shape," said Fischer. "We have a lot more freedom of action than European countries and even the US, because of the positive things done by governments. If we act properly, we'll be able to successfully deal with the risks facing us. What is success? Avoiding a recession. But there is no doubt that what is happening around us will affect us, and we won't be able to grow as we once did. It's impossible not to be affected by the global economy."
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