Bar-On downplays danger of a recession

The government will not hesitate to act in response to the dollar's plummeting value, Finance Minister Ronnie Bar-On told the Knesset.

Ronnie Bar-On 88 224 (photo credit: Courtesy)
Ronnie Bar-On 88 224
(photo credit: Courtesy)
The government will not hesitate to act in response to the dollar's plummeting value against the shekel and the US credit crisis, Finance Minister Ronnie Bar-On told the Knesset on Wednesday. "The Treasury is closely following the crisis in the US," he said. "We shall act decisively and without hesitation if intervention is needed." Bar-On asked the MKs to be patient, adding that it was difficult to predict the long-term effect of the drop in the dollar's value, because Israeli economists did not yet have a "broad enough perspective." "I am disturbed by the possibility that the dollar will continue to drop against the shekel," he said. "Obviously, that drop would have a negative influence on the economy." Bar-On said he did not believe Israel's economy was in danger of a recession. "Recent events are likely to precipitate a slowdown in economic growth, but not a recession," he said. While Israeli stocks began to climb Wednesday morning, the dollar slumped to NIS 3.36.