According to the recent publication by Central Bureau of Statistics of Israel (CBS), the GDP of Israel continues to grow but at a slower pace:
During the second quarter of 2011 the Israeli Gross Domestic Product grew by 3.3% in annual terms. This is a decrease in the growth rate from the 4.7% during the first quarter of 2011, and 7.4% during last quarter of 2010.
The private expenditure inclined by 2.2% (Y-o-Y) during the second quarter after it had increased by 7.8% in the first quarter; the general government expenditure fell by 4.4% in the second Q 2011 – the first drop in over two years.
In total, the first half of 2011 growth rate was 5.0% compared with a 5.7% growth in the previous half, and 5.6% growth rate during the first quarter of 2010.
Despite the high robust growth rate in Israeli GDP compared with the GDP growth rates in the US and Europe during the second quarter of 2011, there are growing concerns of an economic slowdown in the Israeli market. The Israeli GDP growth rate has declined in recent quarters and this recent growth rate in 2Q 2011 is the lowest growth rate since Q2 2009. If this downward growth rate will further fall in 3Q 2011, it may further strengthen the current speculation of Israel’s economy is slowing down.
Lior Cohen, M.A. economist and blogger at IBR and Trading NRG.
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