Recent Economic Developments, 102

18/08/2003
All Press Releases In Subject:
The Economy and Economic Activity

Recent Economic Developments, 102

Overview:

In the first half of 2003 (henceforth “the period reviewed”) the rate of decline of economic activity moderated, with some indications of stabilization at a low level. The continued recession in real activity in the period reviewed was expressed by a further decline in the composite stateof- the-economy index, reflecting mainly a fall in the number of employee posts and in the index of manufacturing production, and the stabilization of the index of revenue in commerce and services at a low level. On the other hand, business-sector product increased in 2003:I, and the Bank of Israel’s Companies Survey for 2003:II indicates an easing of the rate of reduction of activity, and even a rise in the activity in the commerce, tourism and transport and communications industries, In the financial area improvement was evident during the period reviewed, expressed in a decline in the inflation environment and in long-term yields, and a sharp rise in share prices and the volume of stock-exchange transactions.

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