Monetary restraint in 1997 succeeded in reducing the rate of inflation to 7 percent, and was less than 5 percent during the first half of 1998. These policies, combined with other steps, will promote competitiveness and increase efficiency, thus providing the means to further integrate Israel into the global economy and to achieve sustainable growth. Israel is committed to structural reforms, including privatization and deregulation, leading ultimately to a liberal market economy. Foreign currency restrictions on both households and the business sector were recently lifted. This step constitutes the beginning of the end of foreign currency deregulation which began almost a decade ago.
Optimism regarding Israel's economic future seems to be shared by the investment community.
The development of Israel's capital market is crucial to both the direction and scope of its economic future. Dynamic capital markets are more flexible and responsive to new economic opportunities. Israel's capital market continues to undergo significant changes on all levels of activity. Standing on the threshold of the new millennium, Israel has much to look forward to. Historical events have opened a window of opportunity for us and for our neighbors in the Middle East.