Hi-Tech Crisis Hurts Israeli Economy More than Terrorism

(Globes) - Zeev Klein The decline on U.S. stock exchanges, especially Nasdaq, and the global high tech crisis have affected the Israeli economy more than the conflict with the Palestinians. The high-tech crisis and the Nasdaq slide since August 2000 have cost Israel 2.9% of GDP, amounting to 65% of the total loss of growth in the past 30 months. The chief causes were a fall in foreign investments, particularly in Israeli start-ups. The conflict with the Palestinians, and the accompanying terrorism, have reduced growth by 1.6% of GDP, amounting to 35% of the total loss in growth over the past 30 months. This loss was mostly in tourism, revenue from which dropped by over 40%, and in exports to the Palestinian Authority.

2003-01-03 00:00:00

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