The rate of economic growth slowed during the second half and, more markedly, the fourth quarter of 2005, according to figures published today by the Central Bureau of Statistics. The slowdown was attributed to the moderate 1.7% rise in exports and a 0.2.% decrease in total public spending during the second half of the year. GDP during the second half of 2005 increased by an annualized rate of 4.9% only, after a rapid increase of 5.3% during the first half of the year and a 5.5% increase during the second half of 2004. The business product in the second half of 2005 rose by an annualized 6.6%, adding to the rapid 6.7% rise during the first half the year.
The increase in GDP during the second half of the year, reflects a yearly increase of 4.5% in consumer expenditure and a 2.9% increase in investment goods. Exports excluding diamonds and startups, increased by annualized rate of 3.2% during the second half of the year. The growth in business product during the second half of 2005 reflects an increase in activity in industrial and most service sectors, specifically transport, communications, trade, accommodation, financial and business services. The construction industry continued its lackluster performance with volumes remaining unchanged during the second half of the year.
Growth per capita during the second half of 2005 increased 3%, following on from a 3.5% increase during the first half of the year. The standard of living (consumption per capita) increased 2.7%, continuing the 2.3% rise recorded in the first half of 2005. GDP for 2005 was NIS 531.4 billion. GDP per capita was NIS 74,925 or around $16,300.
Total private consumption during the second half of 2005 increased 4.5%. Consumption of electrical goods and other durable goods, including vehicles increased 1.9%, after a sharp rise of 3.9% during the first half of 2005. Expenditure on household furnishings per capita increased 8.4%, following a fall of 3.9% . The total volume of purchases per capita of household items such as fridges, washing machines and televisions rose 3.9% following a fall of 1.1%. Purchases per capita of new vehicles fell by an annualized rate of 2.5% after soaring 15.4% during the first half of 2005.
Published by Globes [online], Israel business news - www.globes.co.il - on February 14, 2006