In a preliminary report given to Bank of Israel Governor David Klein and Finance Minister Silvan Shalom on Monday, members of the International Monetary Fund (IMF) recommended that Israel continue to reduce interest rates, rein in fiscal spending, and abolish the foreign exchange trading band, reported the Jerusalem Post on Tuesday.
Led by IMF European Division head Masahiko Takeda, the delegation complimented Israel for tremendous growth during the first three quarters of 2000, the report said.
However, the IMF economists forecast that Israel's gross domestic product (GDP) would grow by only 1.5-2 percent, adding that even this could prove optimistic, given the global downturn of hi-tech and the "local security situation."
Israel has been struggling to contain an uprising of the Palestinian people in areas it has forcibly occupied for decades. Over 500 people have been killed, the vast majority of them Palestinians, according to the BBC – Albawaba.com
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