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||2.38||-6.07 %||Jan 20|
|Exchange Rate||3.81||0.03 %||Jan 20|
|Stock Market||1,244||-0.32 %||Jan 20|
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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.
January 15, 2017
Consumer prices in Israel were unchanged in December compared to the previous month, above the 0.4% drop recorded in November and the same figure analysts had expected. Consumer prices fell 0.2% year-on-year in December, which was above November’s 0.3% decline and the softest drop recorded since December 2014.
January 12, 2017
According to the Central Bureau of Statistics (CBS), exports totaled USD 4.7 billion in December, which was virtually identical to November’s USD 4.8 billion figure.
January 11, 2017
The consumer confidence index dropped from minus 11.4 points in November to minus 12.5 points in December and remains firmly entrenched in negative territory. The business confidence index produced by the Central Bureau of Statistics (CBS) came in at 19.4 in December, which was above the previous month’s reading of 17.1 points and the highest number in almost three years.
January 9, 2017
The business confidence index produced by the Central Bureau of Statistics (CBS) came in at 19.4 in December, which was above the previous month’s reading of 17.1 points and the highest number in almost three years. The consumer confidence index improved from minus 12.2 in October to minus 11.4 in November, the best result in four months, but it was still firmly entrenched in negative territory.