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||2.21||0.72 %||Mar 28|
|Exchange Rate||3.62||-0.06 %||Mar 28|
|Stock Market||1,254||0.57 %||Mar 28|
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March 22, 2017
In February, the Bank of Israel (BoI) Composite State of the Economy index rose 0.31% from the previous month, which was marginally below January’s 0.32% increase.
March 15, 2017
Consumer prices were unchanged in February compared to the previous month (January: -0.2% month-on-month), as a rise in prices for fresh fruit and vegetables was offset by a decline in prices for clothing and footwear. Inflation came in at 0.4% in in February, which was above January’s 0.1% figure and overshot analysts’ expectation of 0.2% inflation.
March 13, 2017
According to the Central Bureau of Statistics (CBS), exports rose 4.4% compared to the same month of the previous year, accelerating from the 1.6% rise seen in January.
Israel: Consumer confidence declines further, business confidence hits fresh record high in February
March 9, 2017
The consumer confidence index produced by the Central Bureau of Statistics (CBS) dropped from minus 13.8 points in January to minus 16.2 points in February, which was a one-year low.
February 27, 2017
At its 27 February monetary policy meeting, the Bank of Israel (BoI) left the policy rate unchanged at 0.10%, in line with market analysts’ expectations and despite better-than-expected economic growth.