According to the recent publication by Central Bureau of Statistics of Israel (CBS), the GDP of Israel continues to grow in 2011at a very similar rate to the grow rate of the GDP in 2010:
This flash estimate is based of the performance of the Israeli economy during the first three quarters of 2011: the Israeli Gross Domestic Product is estimated to grow by 4.9% in annual terms. This is a very similar growth rate to 2010, back when the Israeli GDP grew by 4.8%; in 2009 the GDP of Israel grew by 0.8%.
The private expenditure is projected to incline by 4.8% (Y-o-Y) during 2011, after it had increased by 5.8% during 2010.
Despite the high robust growth rate in Israeli GDP compared with the GDP growth rates in the U.S and Europe during 2011, there are still growing concerns of an economic slowdown in Israel in the rest of 2011 and 2012. The Israeli GDP growth rate has declined in recent quarters: during the second quarter of 2011 the Israeli GDP grew by only 3.7% compared with a growth rate of 5.1% in the first quarters of 2011. There are also concerns that the current debt crisis in Europe may eventually start to affect the Israeli economy. The Ministry of Finance released today, November 15th its analysis of the economic situation of Israel during September 2011: the analysis presented a slowdown in the economic activity of Israel including decreases in manufacturing production index. During January to October there was a shortage of 2.6 billion NIS ($712 million) in tax collections compared with the tax collecting targets.
Lior Cohen, M.A. economist and blogger at IBR and Trading NRG.
Want a more detailed analysis on Inflation in Israel? IBR can do it for you…read here for more