Israel's Gross Domestic Product (GDP) grew by 6.5% in 2022, the Central Bureau of Statistics reported today. The growth figure for 2021 beat the Bank of Israel and Ministry of Finance forecasts of 6.3%.
The fourth quarter of 2022 pulled the annual growth figure higher with GDP growth of 5.8% on an annualized basis, after a more modest growth of 2.1% on an annualized basis in the third quarter of 2022.
The high 2022 growth figure follows even higher 8.6% GDP growth in 2021, after the economy had contracted by 1.9% in 2020 due to the Covid pandemic.
Taking into account population growth of more than 2% in 2022, per capita GDP grew by 4.4% to NIS 184,000 in 2022, after per capita GDP grew by 6.8% in 2021.
The Central Bureau of Statistics reports that Israel's GDP per capita growth last year was 70% above the OECD average of 2.6%. Israel had the second highest GDP per capita growth after Ireland of 14 OECD countries examined.
The higher than expected GDP growth together with the disappointingly high inflation figures in January support a rate hike of 0.5% to 4.25% by the Bank of Israel Monetary Committee rather than the previously expected 0.25%.
In 2022, private consumption in Israel grew by 7.5% and per capita private consumption grew by 5.5%.
With the economic slowdown expected to impact this year, the Bank of Israel's most recent forecast from last month for GDP growth in 2023 was 2.8%.
Published by Globes, Israel business news - en.globes.co.il - on February 16, 2023.
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