Recent Economic Developments, 99

06/11/2002
All Press Releases In Subject:
The Economy and Economic Activity

Recent Economic Developments, 99

Overview:

During April–September 2002 (the period reviewed) economic activity continued to contract, as it has since 2001. The decline in activity was expressed in most of the economic indices: the composite (State-of-the- Economy) and the manufacturing production indices went down, manufacturing exports plummeted, and imports declined. Employment figures indicate stagnation. The contraction of economic activity was affected by the decline in private consumption, while domestic public consumption rose sharply. Alongside the fall in activity, there was instability in the financial markets until mid-year. In 2002:III financial pressure eased, because the Bank of Israel raised its key interest rate in June and the budget was amended, signalling greater fiscal restraint.

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