First quarter growth figures revised downwards

The Israeli economy grew by an annualized 2.7% in the first quarter, not by 3.1% as originally estimated a month ago.

For the second time within a month, the Central Bureau of Statistics has revised downwards its GDP growth estimate for the first quarter of 2012. It reported today that growth was an annualized 2.7% in the first quarter, compared with 2.9% in its second reading and 3.1% its original estimate, published a month ago.

Israel's growth rate has been falling steadily since the unprecedented annualized growth rate of 7.2% achieved in the fourth quarter of 2010. The growth rate has fallen from an annualized 4.7% in the first quarter of 2011 to 2.7% in the first quarter of 2012.

The Central Bureau of Statistics today reported a slowdown in exports, imports, consumption, and investment growth. Business product growth fell sharply to an annualized 2.2% in the first quarter, from 3.4% in the preceding quarter and 4.4% in the third quarter of 2011.

Private consumption per capita rose by an annualized 2.1% in the first quarter, after falling by an annualized 1.8% in the preceding quarter. However, private consumption per capita of durable goods, an indication of the standard of living, fell by an annualized 2.2% in the first quarter. This is the second consecutive quarter in which this item has fallen.

Investment in residential construction rose by an annualized 10.5% in the first quarter.

Published by Globes [online], Israel business news - www.globes-online.com - on July 16, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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