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Sharon under fire over dire state of economy.
(From FT Investor (Stories))
The dire state of Israel's economy has surfaced as a potential election issue with controversy over an official report that last year's growth rate was the worst in 50 years.
Ariel Sharon, prime minister, summoned the chief government statistician to demand revision of a central statistics bureau statement that a negative growth rate of 1 per cent in 2002 represented the economy's poorest performance since 1953.
It was the second time in a week that Mr Sharon had reprimanded an economic official. On Monday, he called in David Klein, central bank governor, after the shekel fell when he said the collapse of a big commercial bank could not be ruled out.
Criticism of the government's conduct of the economy, battered by the high-technology downturn and more than two years of political violence, has so far failed to dent the lead of Mr Sharon's Likud party.
The opposition Labour party, however, leapt on the latest controversy, saying the prime minister and Silvan Shalom, his finance minister, were to blame for the collapse of the economy.
The statistics bureau said this week that per capita GDP fell 3 per cent last year to $15,600, while unemployment was up 1 percentage point to 10.4 per cent. Output in the ...
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