Defying forecasts, Israel's economy grew at 6.8% in Q2

Carmel Market Tel Aviv Credit: Eyal Izhar
Carmel Market Tel Aviv Credit: Eyal Izhar

After GDP contracted at 2.9% in the first quarter, the Israeli economy has posted the strongest growth in the OECD.

Israel's GDP grew 6.8% on an annualized basis in the second quarter of 2022, the Central Bureau of Statistics reports. The growth figures are in contradiction to expectations which was forecasting an economic slowdown, after the Israeli economy contracted 2.7% in the first quarter, according to the most recent assessment.

The Central Bureau of Statistics explains the strong growth in the second quarter as a return to post-Covid routine with recoveries in the tourism, aviation, hospitality, restaurant and transport services sectors.

Israel's GDP has grown 7.4%, compared with the second quarter of 2021, which is so far the highest growth recorded of any OECD country, beating Portugal (6.9%), Spain (6.3%), Canada (4.8%), the US (1.6%), and Germany (1.5%).

GDP per capita rose 4.5% on an annualized basis in the second quarter of the year and by 4.8% in the first half of the year. Private consumption per capita rose by 8% in the second quarter, on an annualized basis from the first quarter.

Exports of goods and services rose 13.9% in the second quarter, on an annualized basis.

Published by Globes, Israel business news - en.globes.co.il - on August 16, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Carmel Market Tel Aviv Credit: Eyal Izhar
Carmel Market Tel Aviv Credit: Eyal Izhar
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