Bank of Israel Governor Stanley Fischer told reporters Tuesday afternoon that Israel's economy is healthy but "there is no doubt that the Israeli market will be affected by the slowdown in world growth." Fischer projected the economic growth rate for 2008 at 3.2 percent, compared with 5.3 percent in 2007, due to the world economic situation, but said he did not expect Israel to sink into a recession.

Fischer shared his views with reporters during his presentation of the Bank's 2007 annual report.