Growth rate experiences slowdown (illustration)
Photo: Index Open

CBS forecasts 3.5% growth in 2012

Data compiled by Central Bureau of Statistics point to increased demands in all industries, yet slowdown in private consumption growth continues

The Israeli economy is expected to grow by 3.5% in 2012, according to a positive Central Bureau of Statistics (CBS) forecast published Tuesday.


About a month ago, CBS reported of a mere 3% growth in the first half of the year. The budget deficit stands at 4.1%, preventing the government from reducing the debt-to-GDP ratio in the coming year.


Nonetheless, the growth rate has slowed down compared to the past two years: In 2012, the economy grew by 5%, and in 2011 by 4.6%.


Data compiled by CBS in the past eight months point to continued growth on all parameters. The GDP of the business sector is expected to grow by 3.4%, private consumption by 2.8%, public consumption by 3.8%, the investment in the economic industries is expected to rise 2.5% (opening new companies, buying equipment, etc), construction for housing purposes is expected to increase by 5%, and exports (excluding diamonds) – by 6.3%.


Data regarding the forecast for the remaining months point to increased demands in all industries as well, yet the slowdown in private consumption growth continues.


Following a 5.3% increase in 2010 and a 3.8% increase in 2011, private consumption is expected to grow by a lower rate of 2.8% this year due to an expected moderate growth of 1.7% in private consumption per capita and a 7.3% drop in the purchase of consumer durables like cars, furniture and electrical appliances.



פרסום ראשון: 09.12.12, 14:00
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