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Economy up 2.9% in Q1 2012
After seeing similar growth in previous quarters, Central Statistics Bureau says upwards trend indicates increased financial activity
The Israeli economy
has grown by an annual rate of 2.9% in the first quarter of 2012, according to a second round of estimates released by the Central Bureau of Statistics.
A preliminary estimation signaled a 3% growth.
Opposite Directions
Avital Lahav
Numbers show that unemployment in Israel is down, the stock market is stabilizing, and consumption is moderately on the rise. However, both industry and exports – considered main growth drivers – are down. Trend or coincidence?
According to the CBS, the economy grew by 3.1% in the final quarter of 2011 and 3.3% in Q3 of that year.
The upwards trend indicates an increased scope of financial activity by most parameters. Business GDP was up 2.6% and private consumer spending was up 3.7%.
Meanwhile, exports of goods and services have grown by 3.4% and government consumption increased by 3.3%.
A whopping 7.3% increase registered in fixed asset investment, which includes acquisition of equipment, establishment of new businesses and investment in real estate. The import of goods has experienced a growth of 6.7%, after seeing a drop of 4.5% in the previous quarter.
Expenditures on durable goods per capita were down by an annual rate of 4.8% in Q1 2012, after dropping 17.4% in the preceding quarter. Expenditures on household appliances have increased by an annual rate of 8.7%, after dropping 16.3% in the previous quarter.
Spending on furniture saw a growth of 2.8% while outlay for cars dropped 14.3% in Q1, both at the annualized rate.
