When Karnit Flug was appointed governor of the Bank of Israel in October 2013, the export-intensive Israeli economy was grappling with the effects of diminished growth in the US and Europe. The slowdown in exports ultimately hit the country hard as gross domestic product growth for the year reached a lower-than-expected 3.3%.
Nevertheless, in the first year of her role, Ms Flug has been widely praised for her stewardship of the Israeli economy. Under her guidance, the Bank of Israel has maintained a loose monetary policy, while taking action, when needed, to promote stability and diversity in the country's economy.
