Israel's GDP grew 2.5% on an annualized basis in the first quarter of 2023, the Central Bureau of Statistics. This is in line with the annual forecast of the Bank of Israel and slightly below the Ministry of Finance forecast of 2.7% but well above the IMF's forecast of 1.5% GDP growth in Israel in 2023.
The first quarter of 2023 saw enormous volatility in Israel's situation with a political crisis beginning in January that brought growing concerns that it would damage the country's economy as expressed in the reports of many Israeli and international organizations including the Bank of Israel and the IMF.
Even so with Israel's population growing by about 2% annually, the latest figures show per capital GDP growth of just 0.1%. S&P forecast that Israel will have negative per capita GDP growth in 2023.
Moreover the latest data showed that private consumption fell by 1.7% in the first quarter of 2023 in Israel, due to the influence of higher interest rates. Imports of goods and services fell 5.8% in the first quarter of 2023.
The Central Bureau of Statistics also reported that there was 0.6% GDP growth in the first quarter of 2023 compared with the preceding quarter - a figure that is higher than the OECD average and higher than the US, UK, France and Germany.
Israel's economy grew by 6.5% in 2022 but sticky inflation and rising interest rates have caused a slowdown both worldwide and in Israel.
Published by Globes, Israel business news - en.globes.co.il - on May 16, 2023.
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