Recent Economic Developments, 91

02/08/2000
All Press Releases In Subject:
The Economy and Economic Activity

Recent Economic Developments, 91

Overview:

Data on activity in the principal industries in the first half of 2000 (the period reviewed) point to the consolidation of the economic recovery that began in 1999:II, notably the rapid growth of GDP and business-sector product, the rise in the composite index, increase in imports of intermediates and capital goods, and expansion of labor inputs in the business sector. Concurrent with economic growth were structural changes which are consistent with sustainable growth—a change in the composition of employment (contraction of employment in the general government sector and expansion in the business sector), by-industry composition (rapid rise in the output of advanced industry, and of high-tech in particular), composition of uses (rapid increase in exports and moderate rise in private and public consumption), and continued reduction of the trade deficit. The rapid economic growth was accompanied by real local-currency appreciation, despite the slowing of domestic demand and the deterioration in Israel’s terms of trade, and was led by exports, which soared. According to the trends that emerged in the period reviewed, progress was made towards attaining the long-term annual goals in the areas of prices and the reduction of the budget deficit.

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