Bank of Israel: Second Lebanon War Reduced GDP by Only 0.5%

The Bank of Israel said that GDP resumed an annualized growth rate of over 5% during Q4/06. In addition, the war had no effect on Israel's financial stability
26.02.07 / 00:00
Bank of Israel: Second Lebanon War Reduced GDP by Only 0.5%
26.02.07
Bank of Israel: Second Lebanon War Reduced GDP by Only 0.5%
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The Bank of Israel said that GDP resumed an annualized growth rate of over 5% during Q4/06. In addition, the war had no effect on Israel's financial stability

The Bank of Israel announced last week that the second Lebanon war in mid-2006 cut Israel's GDP by only 0.5%, or $595m, half the preliminary estimate of a loss of 1% of GDP.
Earlier speculations said that the Ministry of Finance had feared that the war could cost 1.5 - 2% of GDP, up to $2.38b.
 
 
The Bank of Israel said that GDP resumed an annualized growth rate of over 5% during Q4/06. In addition, the war had no effect on Israel's financial stability.
The bank said the loss of tourism revenue attributable to the war amounted to 0.3% of GDP. The loss of tourism cost business product 1.7% in 2006. 

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