GDP figures for the first quarter of 2014 are a big disappointment: GDP grew by just an annualized 2.1%, well below capital market analysts' forecast of 3.5% growth or more. GDP grew by an annualized 2.9% in the fourth quarter of 2013 and 1.9% in the third quarter.
The Central Bureau of Statistics revised the fourth quarter data upwards and the third quarter data downwards.
Business product, the growth engine of the economy, grew by just 0.4% - a level not seen since the 2009 recession. Moreover, GDP per capita is basically zero.
Households are feeling the slowdown. Private consumption fell by 2% in the first quarter and by 4% per capita. Investment in fixed assets fell by 14%.
Worse, spending on durable goods per capita, which reflects consumers' willingness to spend and consumer confidence, fell by 6% in the first quarter after falling by 8% in the preceding quarter. Purchases of refrigerators, air conditioners, and washing machines were down 40%.
Published by Globes [online], Israel business news - www.globes-online.com - on May 18, 2014
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