Israel’s economy is growing at 4.1% a year, states “The Economist”, on the basis of Central Bureau of Statistics data.
The Central Bureau of Statistics recently revised upwards its growth estimates for the first quarter of 2005 from an annualized 2.9% to 3.3%, compared with the fourth quarter of 2004. A week ago, Israel Tax Authority director Eitan Rub said the economy had returned to 4% growth during the second quarter.
“The Economist” chart of 25 emerging economies shows that 16 countries have higher growth rates than Israel, ranging from 4.2% to 9.5%. Even Egypt has higher a growth rate than Israel at 4.7%. China has the highest growth rate for an emerging economy at 9.5%, followed by Argentina 8%; Venezuela 7.9%; Peru 7.1%; India 7%; Indonesia 6.4%; and Hong Kong 6.4%.
Eight emerging markets have lower growth rates than Israel: Poland 2.1%; Mexico 2.4%; Taiwan 2.5%; South Korea 2.7%; Brazil 2.9%; Hungary 2.9%; Thailand 3.3%; and Colombia 3.6%.
“The Economist” chart indicates that Israel’s economy is heading upwards in the right direction. Industrial output rose by an annualized 12.8% in April, the latest known figure. Only two of the 25 emerging markets have higher rates of industrial output: Venezuela 28.2%; and China 16.8%. The following emerging markets are ranked after Israel: India 10.8%; Indonesia 10.1%; Hungary 10.1%; Peru 9.1%; and Thailand 8%.
“The Economist” chart also shows that Israel’s trade deficit for the preceding 12 months was $7.6 billion. However, Israel’s balance of payment current account has a surplus of $1.9 billion. Israel also has very high foreign currency reserves of $25.5 billion, which reduces the possibility of a future crisis in the balance of payments and foreign currency.
Published by Globes [online], Israel business news - www.globes.co.il - on July 28, 2005