Investment in Israel
Israel - Investment
Economic growth picks up steam in the final quarter of 2018
According to the first reading of national accounts data, which was released on 17 February by the Central Bureau of Statistics, the economy accelerated in the fourth quarter. Growth logged 3.1% over the previous quarter at a seasonally-adjusted annualized rate (SAAR), a noticeable pick-up from the third quarter’s upwardly revised 2.4% expansion (previously reported: +2.3% quarter-on-quarter). Compared to the same quarter of 2017, the economy expanded 2.8%, down from the upwardly revised 3.0% increase in the third quarter (previously reported: +2.9% yoy).
On the domestic front, the economy benefited from stronger growth in private consumption and a rebound in fixed investment, while government expenditure growth softened. Private consumption grew 4.9% quarter-on-quarter in the fourth quarter, which is a noticeable increase from the third quarter’s 3.3% expansion. Household expenditure growth was buttressed by a rebound in consumption of durable goods and rapid growth in expenditure on semi-durable goods. The rebound in fixed investment, which expanded 3.0% (Q3: -7.8% qoq), was driven by industrial investments, while residential building investment fell again. Meanwhile, government consumption grew 2.8%, down markedly from the 9.8% expansion in the third quarter.
On the external front, exports of goods and services swung from a 12.9% expansion in Q3 to a 3.0% contraction in the fourth quarter. Imports of goods and service, meanwhile, rebounded vigorously from a 3.7% drop in the third quarter to a 7.3% expansion in Q4.
Looking ahead, although the economy is expected to continue growing at a solid pace, economic growth is seen losing some steam this year. Domestic demand should remain resilient aided by an uptick in fixed investment growth. Meanwhile, merchandise exports should accelerate this year, although they remain vulnerable to lingering global trade tensions while regional instability further clouds the economic panorama.
The Bank of Israel expects GDP growth to reach 3.4% in 2019 and 3.5% in 2020. This is above Met the why particular Consensus Forecast panelists prediction of 3.2% growth in 2019, which is unchanged from last month’s forecast. For 2020, our panelists see the economy expanding 3.3%.
Israel - Investment Data
|Investment (annual variation in %)||3.6||0.8||-0.8||11.9||2.7|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||1.95||-1.69 %||Apr 22|
|Exchange Rate||3.59||-0.37 %||Apr 18|
|Stock Market||1,462||-0.91 %||Apr 22|
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April 17, 2019
The Purchasing Managers’ Index (PMI), produced by Bank Hapoalim and the Israeli Purchasing & Logistics Managers Association (IPLMA), rose from 49.6 in February to 52.2 in March, moving above the neutral 50-point mark separating contraction from expansion in the manufacturing sector. The change in the headline figure was driven by stronger growth in domestic demand, production and employment.
April 16, 2019
Exports expanded 5.2% in March in USD terms, up from February’s 2.4% growth, while imports were up 4.9%, contrasting a 7.4% contraction in February.
April 15, 2019
Consumer prices rose 0.5% in March over the prior month, up from February’s 0.1% rise.
April 11, 2019
Confidence among Israeli household improved from minus 11 in February to minus 8 in March.
April 8, 2019
At its 8 April meeting, the Monetary Committee of the Bank of Israel (BoI) kept the interest rate unchanged at 0.25%, as had been widely expected by market analysts.