JERUSALEM: Boosting exports and investments needs to be the main priority to strengthen Israel's economy, Bank of Israel Governor nominee Leo Leiderman said in an interview published on Thursday.
Leiderman, chief economist at Bank Hapoalim, Israel's largest lender, was chosen on Wednesday to lead the bank and replace Stanley Fischer, who stepped down at the end of June after eight years in the post.
If confirmed, he inherits an economy that is slowing mainly due to sluggish growth of exports, which account for some 40 percent of Israeli economic activity.
Israel's largest trading partner is recession-hit Europe.
The situation has been worsened by a poor level of investment in fixed assets, which has fallen for four consecutive quarters.
"It's now very important to restore the Israeli economy to a growth track," Leiderman said in an interview with the Yedioth Ahronoth newspaper.
"We have to put the growth engines in high gear. I am confident that we will be able to do this soon."
Growth excluding natural gas production is expected at 2.8 percent in 2013 and 2.5 percent next year, after a 3.2 percent pace in 2012.
"Give me a hundred days of grace and then you will see that we will start to see results," Leiderman said, noting that the first matter that should be dealt with in the Israeli economy is returning the growth engines to high output.
"We mainly have to address increasing exports and increasing investment in the economy."
"Exports and investments have been slow for some time and they must be returned to a better track ahead of the 2014 budget year so that they will again work at full output," he said.
Leiderman must still be confirmed by a committee that vets senior civil servants and Israel's cabinet. (Reuters)
