Intifada drops Israel’s GDP 9.8 percent Q4 2000
The impact of the Palestinian uprising on the Israeli economy was clearly evident during the fourth quarter of 2000, as the country’s gross domestic product fell by an annualized 9.8 percent, reported the country’s Central Bureau of Statistics.
The fourth quarter fall in GDP, followed on a record annualized gain of 9.3 percent in the third quarter, 7.5 percent in the second quarter, and 6.5 percent in the first quarter
While the slowdown in the Israeli economy could in part be attributed to fall in the NASDAQ, which saw the share prices of Israeli high tech companies listed there plummet, the business sectors that would have been most affected by the Palestinian uprising reported the most dramatic decreases in activity. Tourism, which is always sensitive to changes in the security situation, fell by an annualized 42 percent, when compared to the third quarter of 1999, and agriculture, which has a relatively high number of Palestinian laborers, fell by an annualized 32 percent.
The country’s Central Bureau of Statistics reported that Israel’s exports of goods and services fell by 18.9 percent in relation to the third quarter, and the business GDP fell by an annualized 16.2 percent, after rising 11 percent in the previous three quarters. – (Albawaba-MEBG)
© 2001 Mena Report (www.menareport.com)