Recent Economic Developments, 90

01/05/2000
All Press Releases In Subject:
The Economy and Economic Activity

Recent Economic Developments, 90

Overview:

The main theme running through the period from October 1999 to March 2000 (henceforth—the period reviewed) was the end of the millennium and concern—which turned out to be unfounded—at the implications of the Y2K bug on the global economy. Domestically, the recovery in the level of activity in Israel’s economy continued, albeit at a lower rate than that of the previous two quarters, and the budget for the year 2000 was passed. In international capital markets, technology and internet shares rose strongly and continuously, resulting in new peaks of capital raising and values of firms regarded as being related to the “new economy.” The sharp downward correction to the prices of these shares which occurred at the end of the period reviewed halted these trends, and their current high volatility may have a negative effect on global economic activity later in the year.

Link to File