The Israeli economy and the challenges of globalization

It is now officially recognized that the Israeli economy is in the throes of a deepening recession. According to Israel Bank figures at the end of June 2001, the "combined index for examining the situation of the economy" suffered a sharp decline of 0.6 percent in June, and this is the eighth consecutive month of decline, amounting to an overall 3.5 percent decline in this period. This followed ten months (January-October 2000) in which a 6-percent increase in the index had been achieved. These figures indicate that, up to October 2000, the economy had enjoyed real growth, to be followed by months of real recession. What happened in September 2000 to exert such an influence on Israel's economic situation? The answer is, of course, the Intifada.