I will use this opportunity to discuss the futures of each of these two great institutions. But let me start with recent developments in the Israeli economy. 1. The Israeli economy  The Israeli economy has been growing at an average annual rate of more than 5 percent, since 2004.
In 2007, inflation is expected to be within the target range of 1-3 percent per year. The budget should end the year close to balance. The balance of payments is in a surplus of between 4 and 5 percent of GDP, and foreign direct and financial investments continue to flow into the economy.