In addition, the rate of growth declined to 2.3 percent (annual rate) in the third quarter, and it is expected that the slowdown in Israel's growth rate will continue, i.e., growth will remain positive, but will slow further, (to 1.5 percent in 2009), as opposed to a more significant slowdown, or even a recession, in the advanced economies.
Israel's relatively favorable situation is due to several factors: 1)  The government's fiscal policy in the last few years was a responsible one. 2)  The Bank of Israel’s interest rate policy supported financial stability and the ability of the economy to deal successfully with the effects of the slowdown in growth.