According to the recent publication by Central Bureau of Statistics of Israel (CBS), the GDP of Israel continues to grow:
During the first quarter of 2011 the Israeli Gross Domestic Product rose by 4.7% in annual terms compared to the last quarter of 2010.
During the fourth quarter of 2010 the Israeli GDP grew by 7.6% on a yearly scale.
During the parallel quarter of 2010, the GDP of Israel rose by 5%, therefore this recent news in fact shows of a moderate slow down in the annual growth rate of Israel – but this is nitpicking…
On the other hand, if considering the GDP growth rate per capita, the annual growth rate was only 2.7%. This makes sense because Israel’s population growth is high compared to western countries: in 2010 the population in Israel grew by 1.9%, while the average population growth rate of OECD countries was only 0.5%.
This increase in GDP in first quarter 2011 was mostly due to increase in private expenditure (up by 1.8% yearly scale), export of services and commodities (up by 16% yearly scale). and investments in fixed assets (up by 23.7% yearly scale).
Want a more detailed analysis on Inflation in Israel? IBR can do it for you…read here for more