Recent Economic Developments, 121

02/07/2008
All Press Releases In Subject:
The Economy and Economic Activity

Recent Economic Developments, 121

Overview:

According1 to economic data for the period reviewed— January to April 2008—Israel’s economy is doing well and its economic activity continues to expand at a rapid pace: GDP continued to grow quickly due to the marked expansion of private consumption; the surplus on the current account grew; exports and imports of goods and services rose steeply; unemployment fell significantly and for all education levels alongside an increase in both the participation rate andemployment; the nominal wage per employee post rose. However, these developments occurred alongside sharp price increases in Israel and elsewhere, particularly those of food and fuel, amid growing apprehensions that inflation would exceed the upper limit of the target rate and a rise in inflation expectations; the trade deficit widened; the dollar continued to weaken; the US economic growth rate slowed, and this is expected to have repercussions on the global economy and on Israel; and there was a decline in share prices in Israel and elsewhere—all of which give rise to concern regarding the continuation of rapid economic growth in Israel.

Link to File