GDP in Israel
Israel - GDP
Economic growth accelerates in the third quarter
A first estimate of national accounts data for the third quarter, released by the Central Bureau of Statistics (CBS) on 18 November, showed that the economy accelerated from Q2’s revised 1.2% quarter-on-quarter expansion at a seasonally-adjusted annualized rate (SAAR) to 2.3% in Q3. The result was driven by both the domestic and external economy but came in below market expectations of a stronger 2.8% expansion. Moreover, compared to the same period a year ago, economic growth eased from a revised 3.7% in the second quarter to 3.1% in the third quarter.
In quarter-on-quarter terms, domestic demand benefited from swings in private and public consumption. Private consumption expanded 2.1%, contrasting the 2.6% contraction in the second quarter. This reflected a markedly weaker contraction in the consumption of durable goods, likely still suffering from the surge in automobile sales in the first quarter. Meanwhile, public consumption increased 9.5%, swinging from a 3.3% drop in the previous quarter. Fixed investment, however, contracted at an even sharper rate (Q3: -6.3% qoq; Q2: -4.6% qoq), reflecting a contraction in both residential building and industrial investment.
Turning to the external sector, exports expanded 7.2% in the third quarter following Q2’s 0.8% contraction, while imports dropped 5.0% in Q3 (Q2: -1.9%) over the previous period despite firmer domestic demand.
Going forward, economic growth is expected to remain firm next year and the year after. The economy is expected to be aided by resilient domestic demand and robust foreign demand. However, rising inflationary pressure will likely put a lid on private consumption growth by denting purchasing power. Lingering global trade tensions remain a downside risk to Israel’s economy, while regional instability clouds the outlook.
Israel GDP Forecast
The Bank of Israel expects GDP growth to reach 3.6% in 2019. This is above Met the why particular Consensus Forecast panelists prediction of GDP growth of 3.2% in the same year, which is unchanged from last month’s forecast. For 2020, our panelists also see the economy expanding 3.2%.
Israel - GDP Data
|Economic Growth (GDP, annual variation in %)||4.2||3.5||2.6||4.0||3.3|
5 years of economic forecasts for more than 30 economic indicators.
Israel GDP Chart
Source: Central Bureau of Statistics
|Bond Yield||2.32||-1.69 %||Jan 21|
|Exchange Rate||3.70||-0.37 %||Jan 21|
|Stock Market||1,374||-0.91 %||Jan 21|
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January 7, 2019
On 24 December, Prime Minister Benjamin Netanyahu called a snap election, scheduled to be held on 9 April, amid accumulating political pressure and calls for his resignation over corruption charges.
January 7, 2019
At the first Monetary Committee meeting under the governorship of Amir Yaron on 7 January, the Bank of Israel held fire and kept the policy rate at 0.25% after it had raised the interest rate by 15 basis points in November.
December 23, 2018
The Bank of Israel’s Composite State of the Economy Index increased 0.32% over the prior month in November, up from an upwardly revised 0.30% in October (previously reported: +0.26% month-on-month).
December 19, 2018
In November, the Purchasing Managers’ Index (PMI), produced by Bank Hapoalim and the Israeli Purchasing & Logistics Managers Association (IPLMA) rose to 53.7 in November from 52.7 in October.
December 14, 2018
Consumer prices fell 0.3% over the previous month in November, contrasting October’s 0.3% increase.