Recent Economic Developments, 122

Overview:

The economic data relating to the period under review, May to August 2008, show that Israel’s economic growth continued, albeit at a slower pace than in the last few years. The slowdown was expected, in light of the high rate of growth in the last few years, the closing of the output gap, and the full employment environment. Inflationary pressure and continued real appreciation, which halted in the period reviewed, are consistent with the assessment that the growth slowdown to a great extent expresses the convergence to full utilization of production capacity.

Link to File