GDP in Israel
Israel - GDP
Economic momentum ebbs in 2019 but stays solid
According to preliminary data published on 31 December, the economy expanded 3.3% in 2019, broadly in line with FocusEconomics’ panelists forecast of 3.2% growth but down from the 3.4% expansion observed in 2018. 2019’s reading also marked the third consecutive annual deceleration in economic growth, with the economy knocked by weaker external momentum and domestic political uncertainty.
Private consumption picked up pace somewhat (2019: +3.9% year-on-year; 2018: +3.7% year-on-year), supported by low unemployment, weak price pressures and solid wage gains. Public consumption was also up (2019: +4.1% yoy; 2018: +4.0% yoy), as the government maintained a loose fiscal stance, although fixed investment growth petered out (2019: +0.3% yoy; 2018: +4.8% yoy), likely impacted somewhat by domestic political gridlock.
On the external front, export growth slowed to 3.3% (2018: +5.6% yoy) amid slower global economic momentum and trade tensions, while growth in imports decelerated to 3.4% (2018: +6.4% yoy).
In 2020, panelists see growth broadly stable, buttressed by loose monetary policy and greater energy exports as production from the Leviathan gas field ramps up. However, ongoing political paralysis will hamper domestic policymaking.
FocusEconomics panelists project growth of 3.2% in 2020, which is unchanged from the prior month’s estimate, and 3.4% in 2021.
Israel - GDP Data
|Economic Growth (GDP, annual variation in %)||3.9||2.5||4.0||3.4||3.3|
5 years of economic forecasts for more than 30 economic indicators.
Israel GDP Chart
Source: Central Bureau of Statistics
|Bond Yield||0.98||-1.69 %||Jan 01|
|Exchange Rate||3.46||-0.37 %||Dec 31|
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February 14, 2020
Consumer prices fell 0.4% in January over the prior month, down from December’s flat reading.
February 12, 2020
Merchandise exports fell 0.5% in January in USD terms, following December’s 2.5% decline and marking a soft start to the year after a disappointing 2019.
February 10, 2020
Confidence among Israeli households worsened from minus 7 in December to minus 9 in January, according to the Central Bank’s new survey (which has a different set of subsectors compared to the previous survey which ran until December 2019).
January 26, 2020
The Bank of Israel’s Composite State of the Economy Index rose 0.26% in December compared to the previous month in seasonally-adjusted terms, up from November’s 0.24% expansion.
January 16, 2020
The Purchasing Managers’ Index (PMI), produced by Bank Hapoalim and the Israeli Purchasing & Logistics Managers Association (IPLMA), fell to 51.8 in December from 52.8 in November, but remained above the neutral 50-mark separating expansion from contraction in the manufacturing sector.