ECONOMIC OUTLOOK
March, 2003

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A.Economic Developments in 2002
1. Main Developments
2. The Global Economy, Exports, and the Balance of Payments
3. Private consumption and Gross Domestic Investment
4. Fiscal Developments
5. Labor Market
6. Prices and Monetary Developments
7. Further Developments
B.The Desired Fiscal Policy and Its Effects on the Economy
1. Main Remarks
2. Can Israel Boost Its GDP Significantly by Increasing the
   Budget Deficit?
Appendix: Key Policy Measures Approved by the
Government on March 25

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