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ECONOMY

Challenges and Achievements 207Major Reorms 210'An Economic Miracle' 214 The National Economy Scene 216 The Economic Picture 221Sectors o the Economy 229

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| Economy

I . S z t u l m a n

205

ECONOMY

After having enjoyed for many years one of thefastest GDP growth rates among world economies,Israel is continuing the economic recovery it beganin 2003, after a two-year distinct slowdown in almostall economic activities. This trend continued in 2007,according to all economic parameters. In the years2006-2007, Israel's gross domestic product (GDP)continued its rapid growth, reaching 5.1 percent in2006, in spite of the Second Lebanon War, whichcaused a temporary loss of 0.7% of the GNP. Thespeedy recovery and the continuation of the rapidgrowth were again led by the business sector, whichexpanded by 6.4 percent, resulting in a $20,138 per capita GDP in 2006.

)א"י :ב"י ילשמ(

...םחל עבשי ותמדא דבוע

He who tills the land shall be satised with bread...

(Proverbs 12:11)