Recent Economic Developments, 108

21/02/2005
All Press Releases In Subject:
The Economy and Economic Activity

Recent Economic Developments, 108

Overview:

In the second half of 2004 (the period reviewed) the trend of expansion in economic activity evident since the second half of 2003 continued. In the third quarter of 2004 GDP increased by 3.3 percent in annual terms, and business-sector product grew by 3.9 percent. The rise in economic activity was based on the expansion of business-sector activity, and in particular on increased exports. The composite state-of-the-economy index, the Bank of Israel Companies Survey and other economic indicators relating to the period reviewed point to continued growth in 2004:IV and to expectations that it would become more firmly based in 2005:I. This growth led to salary increases and to a drop in unemployment, although the latter is still very high.

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