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Economy still growing, but slower
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Economic growth drops to 3.3% in Q2

Central Bureau of Statistics reports slowdown compared to first quarter of 2011, during which Israeli economy grew by 4.7%

An initial assessment of the Israeli economy's gross domestic product (GDP) in the second quarter of 2011, published Tuesday by the Central Bureau of Statistics, reveals a 3.3% economic growth from April to June.

 

These figures point to a significant slowdown compared to the first quarter of the year, when the economy grew by 4.7%, and the last quarter of 2010, which saw a 7.4% growth.

 

The GDP in the first half of the year rose by 5%, according to an annual calculation, following a 5.7% increase in the last half of 2010 and a 5.6% in the first half of 2010.

 

Sharp rise in imports, slowdown in exports

The growth in the first half of 2011 was reflected in a sharp rise in imports, which significantly increased the economy's resources (from imports and local production).

 

The economy's overall resources were up 9% in the first half of 2011, according to an annual calculation, after a 5.8% rise in the second half of 2010 and an 8% rise in the first half.

 

The increase in the overall resources in the first half of 2011 reflects a sharp rise of 21.3% in the import of goods and services, following a 6.9% increase in the second half of 2010 and a 13.7% increase in the first half.

 

The personal consumption expenditure (PCE) increased as well – mainly as a result of the rise in household spending on furniture, home appliances and vehicles.

 

The PCE rose by 5.3% in the first half of 2011, according to an annual calculation, following a 2.7% increase in the consumption per capita in the second half of 2010 and a 2.2% increase in the same period last year.

 

The rise in the PCE in the first half of the year reflects a 26.6% increase per capita, according to an annual calculation, in household spending on sustainable products – furniture, home appliances (refrigerators, washing machines, air conditioners, etc) and personal cars.

 

Nonetheless, investment in fixed assets (real estate, equipment and vehicles for business purposes) grew by a slower pace than in the second half of 2010. Investment in fixed assets rose by 16.9% in the first half of 2011, according to an annual calculation, compared to a 25.2% increase in the previous half and a 14.7% increase in the same half last year.

 

Investment in housing alone grew by 18.4% in the first half of 2011, after a 14.5% increase in the previous half and an 11.1% increase in first half of 200.

 

A significant slowdown was also felt in the growth pace of exports compared to the first half of 2010 – a trend which may testify to the global crisis' part in the Israeli economy's slowdown.

 

The export of goods and services in the first half of 2011 rose by 8.1% according to an annual calculation, following a 7.1% increase in the second half of 2010 and a 17.5% increase in the first half of 2010.

 

 


פרסום ראשון: 08.17.11, 07:33
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