GDP in Israel
Israel - GDP
First estimate for 2016 growth shows strong annual expansion, Q3 deceleration confirmed
The Israeli economy picked up steam in 2016, growing 3.8% year-on-year, according to a preliminary estimate published by the Central Bureau of Statistics (CBS) (2015: +2.5% yoy). Israel’s GDP was buttressed by soaring private consumption and healthy fixed investment on the back of accommodative fiscal and monetary policy.
Domestic demand was the main driver of growth in 2016. Private consumption increased 6.1%, up from 4.3% in the previous year, fueled in particular by easy access to credit for households. Government consumption started with a contraction in Q1 2016 but swung up thereafter and expanded 3.8% overall last year (2015: +3.3% yoy). Consistently low interest rates also boosted fixed investment, which rose a remarkable 11.0% after two years of flat growth.
On the external front, the performance was less encouraging, despite a rebound in exports of goods and services. Exports increased 3.0% last year, up from a 4.3% contraction in 2015. Imports of goods and services rebounded steeply from a 0.5% decline in 2015 to a 9.2% rise, supported by the appreciation of the shekel against both the dollar and the euro. As a result, the external sector’s net contribution to overall economic growth deteriorated from minus 1.3 percentage points to minus 2.0 percentage points.
Although the CBS reported a preliminary estimate for 2016 growth, data for Q4 2016 has not been published yet.
The Central Bank expects GDP to grow 3.2% in 2017 and 3.1% in 2018. FocusEconomics Consensus Forecast panelists foresee the economy growing 3.3% in 2017, which is unchanged from last month’s estimate. For 2018, the panel projects that the economy will expand 3.4%.
Israel - GDP Data
|Economic Growth (GDP, annual variation in %)||5.0||2.9||3.3||2.6||2.5|
5 years of economic forecasts for more than 30 economic indicators.
Israel GDP Chart
Source: Central Bureau of Statistics
|Bond Yield||2.40||-2.28 %||Feb 16|
|Exchange Rate||3.72||-0.83 %||Feb 16|
|Stock Market||1,287||0.38 %||Feb 16|
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February 15, 2017
Consumer prices in Israel declined in January compared to the previous month, which was below the 0.2% drop recorded in December. Inflation came in at 0.1% in January, which contrasted December’s 0.2% decline and overshot analysts’ expectation of zero annual change in prices.
February 13, 2017
According to the Central Bureau of Statistics (CBS), exports totaled USD 4.7 billion in January, mirroring December’s figure.
February 12, 2017
The consumer confidence index produced by the Central Bureau of Statistics (CBS) dropped from minus 12.5 points in December to minus 13.8 points in January, which was a four-month low.
January 23, 2017
At its 23 January monetary policy meeting, the Bank of Israel (BoI) decided to leave the policy rate unchanged at 0.10%, in line with market expectations.
January 22, 2017
In December, the Bank of Israel (BoI) Composite State of the Economy index rose 0.45% from the previous month, which was above November’s 0.34% increase and the highest result in 27 months.