Recent Economic Developments, 94

13/08/2001
All Press Releases In Subject:
The Economy and Economic Activity

Recent Economic Developments, 94

Overview:

In the first half of 2001 (the period reviewed), the slowdown in economic activity continued, as a result of the persistence of most of the shocks which had afflicted the economy in 2000:IV: security-related and political unrest, the crisis in the capital markets, particularly in the high-tech industries, and the global slowdown. The continuation and worsening of the shocks and the uncertainty they caused led to further contraction of demand in the period reviewed, a fall in the output of the principal industries, a rise in the number of job-seekers, a slowdown in tax revenues, and a significant diversion of resources to meet defense requirements, with an increase in the share of government expenses in GDP and the budget deficit. In contrast to all the above, the foreign-currency market remained stable, with a slight tendency towards depreciation, inflation expectations stayed low, and the real rate of interest declined.

Link to File