Rise in standard of living slows down
According to data released by Central Bureau of Statistics, private consumption per capita will go up by just 0.9% in 2012 compared to 2% last year
The figures show that the Israeli economy's growth rate will total 3.5% in 2012 – the highest growth rate among Western countries, after a 4.6% increase last year and a 5% increase in 2010.
The gross domestic product (GDP) per capita will total NIS 117,600 (about $30,800) this year and will be 1.7% higher than last year's GDP per capita.
According to estimates, the import of goods and services rose 3% this year, so that all of the economy's sources, from GDP and imports, grew 3.4% after a 6.3% increase in 2011 and a 6.8% increase in 2010.
A significant decline in the standard of living can be seen in the drop in purchasing consumer durables (furniture, electrical appliances, cars, etc). Purchases went down 7.3% in 2012, after an 8.5% rise in 2011.
Purchases of vehicles for private use fell 12.2% per capita, purchases of household equipment (refrigerators, air conditioners, washing machines) dropped by 5.8% per capita, and furniture purchases were down 1.6% per capita.
Asset investment increased 2.6% after a 16% rise last year, the GDP of the business sector went up 3.4%, the industry sector recorded a 3% rise, the construction sector – a 4.3% rise, and the commercial sector – a 2.8% rise.
The government consumption expenditure recorded a 3.8% increase this year, after a 2.9% rise both in 2011 and 2010. This increase reflects a 4.9% rise in the civil consumption expenditure, which includes health services, education, culture, etc, given to households for free.
The defense consum
ption expenditure is expected to record a 0.5% increase this year.
The import of goods and services (excluding diamond and security-related imports) went up 6.8% this year, after a 9.4% increase in both 2011 and 2010.
