Eshkol formed Israel's twelfth government in 1963. His first term in office saw continuous economic growth, epitomized by the opening of the National Water Carrier system in 1964. His and Finance Minister Pinchas Sapir's subsequent "soft landing" of the overheated economy by means of recessive policies precipitated a drastic slump in economic activity. Israel's centralized planned economy lacked the mechanisms to self-regulate the slowdown, which reached levels higher than expected. Eshkol faced growing domestic unrest as unemployment reached 12% in 1966, yet the recession eventually served in healing fundamental economic deficiencies and helped fuel the ensuing recovery of 1967–1973.