Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: DavesM who wrote (312664)	10/31/2002 11:55:16 AM
From: Emile Vidrine	Respond to of 769670

Israel's crumbling economy---Thank you Ariel Sharon The economic recession witnessed during the final quarter of 2001 has hit the economy harder than the economic slowdown of 1997-1999, according to a Bank of Israel survey of companies for the fourth quarter released today. According to the analysis, in the fourth quarter, companies projected a 2.7 percent rise in inflation during the next 12 months. Just a quarter before that, they had expected a 3.4% rise in inflation in the next 12 months. Some 58% of surveyed companies forecast inflation to fall within the government's official year-end target of 2-3% (and 1-3% for 2003), compared to 38% in the previous quarter. Discussing the central bank's 2% interest rate reduction, most of the firms saw the representative rate of the dollar fixed at NIS 4.54 by the end of 2002. In the last central bank companies survey, the average stood at NIS 4.37. The survey of 670 firms revealed that the economic downturn continued for the fifth consecutive quarter since the intifada started in the final quarter of 2000, with a decline of activity in both local and export markets. Additionally orders both domestically and internationally for this quarter were down, showing a continuation of hampered activity for most local companies. While transportation firms forecast a contraction in economic activities, communication firms projected stability for the next quarter. The communications and transportation component of the consumer price index (CPI) has shown tremendous narrowing in economic activity due to the recession, and a lack of tourists. Industrial firms reported not only a contraction in output, but also a decline in their employee ranks, following previous quarters of expansion in company work force. Additionally, industrial firms reported a further decline in inventories, with less future orders registered. Trade and commerce companies reported a decline in sales, with a continuing, if not smaller, fall during the next quarter. Construction firms also registered a decrease in sales, coupled with a decline in prices. As expected the hotel industry continued to post declines in the last three months of 2001, especially in tourist sales. The Bank of Israel said almost all of the hotel and hospitality companies taking part in the survey expected future declines, based on falling reservations. Since violence erupted last year, tourism has fallen by over 50%, affecting the hospitality industry in its entirety. jpost.com