The story of Israel’s economy is a “surprisingly successful” one, given the political upheavals of recent years, according to Stanley Fischer, who took up the post of governer of the Bank of Israel four months ago.

After the worst recession in the country’s history, Israel’s economy has returned to growth and is expected to increase by between 4.5 per cent and 5 per cent in 2005, said Mr Fischer, who was addressing a conference in London on Tuesday aimed promoting investment in Israel.