Israel: Economy improves significantly in Q3
November 16, 2015
In Q3 2015, GDP increased 2.5% over the previous quarter in seasonally adjusted annualized terms (SAAR). The expansion was well above the 0.2% increase tallied in the second quarter and marked the highest reading in three quarters. Q3’s acceleration came on the back of a pickup in both domestic and external demand.
In the third quarter, private consumption expanded 2.4%, which was a significant acceleration over the 1.5% increase seen in the previous quarter. In addition, government consumption swung from a 1.5% contraction in the second quarter to a 1.6% expansion in the third quarter. Moreover, fixed investment expanded 0.7%, which contrasted the 3.1% contraction seen in Q2.
On the external front, exports of goods and services expanded 4.4% (Q2: +9.6% qoq SAAR). Moreover, imports improved from a 7.0% decrease in Q2 to a 0.2% contraction in Q3. As a result, the external sector’s net contribution to overall economic growth swung from minus 0.7 percentage points in Q2 to plus 1.6 percentage points in Q3.
In annual terms, GDP expanded 2.4% in Q3, which was up from the 1.8% expansion reported in second quarter.
Author: Dirina Mançellari, Senior Economist