Recent Economic Developments, 93

07/02/2001
All Press Releases In Subject:
The Economy and Economic Activity

Recent Economic Developments, 93

Overview:

On the basis of real economic developments, the second half of 2000 (the period reviewed) can be divided into two periods. In the first—from July to September, before the unrest erupted in the territories—output grew at a rapid pace, with the expansion of goods and services imports and exports, and a steep rise in the government’s tax revenues, expressed in a budget surplus. In the second period—from October to the end of the year—business-sector product plummeted (according to Central Bureau of Statistics—CBS—estimates for the entire year), the rapid expansion of goods exports and manufacturing intermediates imports slowed, and the government’s tax revenues declined. Nonetheless, and despite the intensity of the trend shift, the financial markets and foreign-currency market remained stable throughout the period reviewed, and the price level was unchanged. Thus, throughout the period reviewed the long-term changes in by-industry structure persisted, and even deepened, with the marked expansion of the advanced sector which also comprises the high-tech industry, supporting the expansion of the basis for future sustainable economic growth.

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