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Israel's GDP grows only 3.6% in 2nd half of 2011
Figures published by Central Bureau of Statistics indicate economic slowdown, but not recession
The Gross Domestic Product (GDP) in Israel expanded at an annual rate of only 3.6% in the second half of 2011, compared with 5.3% in the first half and 5.8% in the second half of 2010, according to data published by the Central Bureau of Statistics on Thursday.
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Investment in fixed assets (residential and industrial construction, plant and equipment, and commercial vehicles) increased by 9% in the second half of 2011, compared with 20% in the first half, but exports of goods and services fell 4.6%.
The figures are indicative of an economic slowdown, but Israel is still far from experiencing a recession (two consecutive quarters of decline in real GDP).
According to the statistics, spending on consumer durables fell 17%, after a 17.5% increase in the first half of 2011. Vehicle purchases suffered a particularly sharp decline - 24.3% per capita in the second half, after a rise of 11.7% in the first half.
Purchases of domestic appliances such as refrigerators, washing machines and air conditioners fell by 16.6% per capita, after rising 42% in the first half.
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