CEOs say Israeli economy in good shape

70% of executives believe that the economic situation is "Good" or "Normal".

Business sector executives are optimistic. 70% of executives believe that the economic situation is "Good" or "Normal", the opposite of the general public's assessment. Executives are also upbeat about 2014: over 80% predict that the Israeli economy will be the same or even better, according to a survey by the Smith Institute for Globes Research an PwC Israel in collaboration with the Manufacturers Association of Israel. The survey's results were presented at today's opening session at the "Globes" 2013 Israel Business Conference.

The three most common responses mentioned as causes of uncertainty (with each respondent referring to the situation in his industry) are the "economic situation" together "the global economic situation" (34%), and government policy. A breakdown by industry showed that export-oriented high-tech executives are especially worried by the global economic situation and the fall in the shekel-dollar exchange rate.

The shekel-dollar exchange rate has fallen 5% since the beginning of the year. This finding was mentioned during the session by former Governor of the Bank of Israel Stanley Fischer as one of the reasons for not using the interest rate as a tool to help solve the housing crisis.

In the real estate industry, executives' assessment of risk is different from high tech, focusing on the domestic economy, the tax burden, and the difficulty in obtaining bank credit. Half of the respondents blame government and municipal regulation as the most disruptive factor for real estate companies.

Bottom line, the business sector gives the government a very low grade: 11% of respondents say that the government helps the business sector, compared with 74% who say that it raises unnecessary obstacles. The remaining respondents said that the government has no effect.

Published by Globes [online], Israel business news - www.globes-online.com - on December 9, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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