Housing prices won't drop without elimination of bureaucracy - Bank Leumi CEO

Bank Leumi CEO Hanan Friedman: "The growth rate in the economy is indeed expected to decline, but no recession is expected. We’re still a long way from there.”

 Illustration photo of the new 100 Israeli Shekel bill. December 31, 2017. (photo credit: NATI SHOHAT/FLASH90)
Illustration photo of the new 100 Israeli Shekel bill. December 31, 2017.
(photo credit: NATI SHOHAT/FLASH90)

"Economic growth will decline but a recession is not expected” in Israel, Bank Leumi CEO Hanan Friedman said two weeks ago at a panel at the conference of accountants chaired by CPA Regina Unger. 

According to Friedman, economically,  we’re in a good position when compared to many other countries.

Why is Israel safe?

Friedman expalined why the Israeli economy is strong: "There’s been a significant increase in the pace of construction starts, new gas discoveries have improved our status in the face of shortages in Europe, hi-tech is still powerful despite the challenges of young companies, thanks to tech changes and Israeli defense exports increased due to the war in Ukraine."

He added that business credit considerations have changed. They now take into account not only sales or profit but business flexibility and the ability to adapt the activity to challenging situations like the COVID-19 pandemic.

Israelis walk past a branch of Bank Leumi in Tel Aviv (credit: REUTERS/GIL COHEN MAGEN)Israelis walk past a branch of Bank Leumi in Tel Aviv (credit: REUTERS/GIL COHEN MAGEN)

"The solution depends on many factors, but the Bank of Israel can’t solve the crisis with monetary tools alone," he said regarding the housing crisis. 

"We must eliminate the tangle of bureaucracy. Until there is orderly legislation in the field of planning and construction, the long-standing gap between supply and demand won’t close and prices will stay high,” he said. 

"We must eliminate the tangle of bureaucracy. Until there is orderly legislation in the field of planning and construction, the long-standing gap between supply and demand won’t close and prices will stay high.”

Bank Leumi CEO Hanan Friedman