Israeli economy picking up pace

Discussion in 'Business & Economics' started by Axes, Feb 8, 2005.

  1. Axes Registered Senior Member

    Messages:
    260
    The foundations for Israel's recovery seem to be in place
    Israel's economy is forecast to grow by 4.2% in 2004 as it continues to emerge from a three-year recession.
    The main driver of the faster-than-expected expansion has been exports, with tourism seeing a strong rebound, the statistical office said.

    The economy is benefiting from a quieter period in Palestinian-Israeli violence and a pick-up in global demand for technology products.

    The outlook is better than it has been for a number of years, analysts said.

    Rosier?

    Many companies have focused on cost cutting and greater efficiency, while the government has been trying to trim public spending and push through reforms.

    The growth figures come about despite a strike earlier this year by about 400,000 public sector worker which closed banks, hospitals, postal services and transport facilities.

    Growth did slow in the second half, but only slightly.

    Exports for the year rose by 14%, while tourist revenues were up by 30%.

    Imports gained by 13%, signalling that domestic demand has picked up again. In 2003, imports declined by 1.8%.

    In 2003, the economy expanded by 1.3%



    The foundations for Israel's recovery seem to be in place
    Israel's economy is forecast to grow by 4.2% in 2004 as it continues to emerge from a three-year recession.
    The main driver of the faster-than-expected expansion has been exports, with tourism seeing a strong rebound, the statistical office said.

    The economy is benefiting from a quieter period in Palestinian-Israeli violence and a pick-up in global demand for technology products.

    The outlook is better than it has been for a number of years, analysts said.

    Rosier?

    Many companies have focused on cost cutting and greater efficiency, while the government has been trying to trim public spending and push through reforms.

    The growth figures come about despite a strike earlier this year by about 400,000 public sector worker which closed banks, hospitals, postal services and transport facilities.

    Growth did slow in the second half, but only slightly.

    Exports for the year rose by 14%, while tourist revenues were up by 30%.

    Imports gained by 13%, signalling that domestic demand has picked up again. In 2003, imports declined by 1.8%.

    In 2003, the economy expanded by 1.3%
     
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  3. Karmashock The Doomslayer Registered Senior Member

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    390
    That's good... they're due a break.

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  5. Undecided Banned Banned

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    4,731
    Israel’s economy is growing again, the economy is totally dependant on the calmness of the Palestinians, and the economy is still in bad shape with its current account deficit, and huge debt load that would put Argentina to shame. The economy is highly dependent on American demand, and if that were to collapse as would the Israeli economy, also the billions in US aid. Israel’s economy to a large degree is essentially another US state being subsidized by American tax payers, who in turn are being subsidized by Asian investors. If Israel wants long run economic growth, and even a trade surplus it has to get serious about peace with the Arab states, because its highly unnatural that you barely trade with your neighbours, and Israel’s economy is dependant on the economic fortunes of the Palestinians. Hopefully things will get better for both sides.
     
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  7. otheadp Banned Banned

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    5,853
    prior to the terrorism campaign, Israel had a huge tourism sector. after the terrorism campaign started, tourism almost ceased. this caused direct damage to the industry, and incremental indirect damage to other industries suffering as a result.

    i believe that because of that, the Israeli economy adjusted and shifted their focus (slightly) to non-tourism industries which are inelastic to levels of terrorism

    the relative quieting down of terrorism has added an additional positive effect to the economy on top of the slightly-restructured economy. Israeli economists see the past 4 years as a lesson that Israel cannot rely on tourism alone. other strong industries must be developped to protect the economy.

    the latest good news come despite an active international boycott and divestment campaign, lately endorsed by the Presbyterian Church in the US and the Anglican Church of England (i think)

    maybe by the time i get my CA designation i'll be able to move back to Israel and actually make a living

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