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.