Kappa21

Data reveals Israeli economy grew rapidly after Lebanon war
By Nathan Sheva

There was a six-week war and then it ended. It sent a third of Israel's population to the roads, escaping the threat of missiles, and shut down whole industries in the region for the duration. But it seems to have had practically no effect on Israel's overall economic robustness.

The conflict did slow economic growth in the third quarter of 2006, but the Israeli economy roared back in the fourth quarter:

The Central Bureau of Statistics (CBS) says that Israel's GDP grew by a whopping 8 percent in the fourth quarter, after shrinking by 0.7 percent in the third quarter, and rising by 6.3 percent in the second quarter - before the war. Overall growth for the year was 5.1 percent, compared to 5.2 percent in 2005.

Altogether, in the second half of 2006, Israel's economy grew by 3.1 percent in annualized terms, in addition to the 5.9 percent surge in economic growth in the first half.

It seems that the last quarter's growth was partly a result of pent-up demand, caused by the war.

Kappa21

Normally 2.3% is a healthy amount for a stable economy to grow.......

Emerging markets like Venezuela, China, Vietnam and so forth grow at aproximately 10% or more... or better yet the Asian Tigers (Korea, Taiwan, China, Vietnam, Indonesia, Malaysia...) are a better example..

so it goes to show that Israel gets knocked down and bounced up again..
and there never gonna take me down...

Livni

"Wars on us make us stronger, threats make us more unified, and terror makes us more resilient. Its peace Im worried about, we'll fall apart".

I wont tell you who made this quote but sometimes I think its true..

seriously, it was to be expected since the war quarter fell from 5% to 2-3% growth, so it equaled out on the next quarter.
also remember there's 20% poverty rate so this growth is not for everyone, the rich get richer.

anyway if you look at 2006-2007 reports almost all companies show big increases in profits, so it
looks like this growth can continue, maybe a little less but still high.

Silently Loud

its true...watch what happened to Israeli economy after 1967

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ira

The strength of Israels economy is in it's global diversification. Lot's of foreign companies doing business in Israel and lots of Israeli businesses doing business in the rest of the world. There are many INTERNET and hi tech companies that don't rely on events in Israel for there success or failure.