Q2 growth beats expectations

The Israeli economy grew by an annualized 3.2% in the second quarter of 2012, faster than in the first quarter.

Israel's GDP rose by an annualized 3.2% in constant prices in the second quarter of 2012, the Central Bureau of Statistics reported today, far above the analysts' forecasts of 2.5% growth. The growth rate was higher than the annualized 2.8% growth in the first quarter and 3.1% growth in the fourth quarter of 2011.

Most surprising was an annualized 10.3% increase in exports of goods and services, and annualized 5.4% growth in private consumption. Public consumption rose by an annualized 1.8%, but investment in fixed assets fell by 1.1%.

It should be remembered that the Central Bureau of Statistics' preliminary estimate of exports of goods and services for the first quarter was 14%, but revised the figure down to 2% two months later. The revision shaved the GDP growth estimate by 0.3 percentage points to an annualized 2.7%.

Today, the Central Bureau of Statistics again revised the first quarter GDP growth figure to an annualized 2.8%.

GDP growth was an annualized 3% in the first half of 2012, down from 3.3% in the second half of 2011 and 5.1% in the first half.

Published by Globes [online], Israel business news - www.globes-online.com - on August 16, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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