Central Banking

Interview with BoI governor David Klein

With the Middle East teetering on the brink of armed conflict, weinterview the newly appointed governor of the Bank of Israel, DrDavid Klein.

Q. What is the state of Israel's economy at themoment?

After a few years of relatively slowgrowth, we are now on our way toexhausting the potential of the economyto grow at an annual rate of some 5%.This is export-led growth and, hence, itdoes not entail an increase in the balanceof payments deficit. The unemploymentrate peaked last year at 9%. In the

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