The slowing in Israeli GDP growth in the second quarter stands out negatively by an international comparison. Growth in Israel is lower than in most developed countries, according to a review published by the Ministry of Finance.
Second quarter growth in Israel was 0.3%, compared with 1.7% in the European Union as a whole, 3.1% in Greece, 4.1% in Spain, and 2.4% in the US.
Growth in the euro zone was lower than in the first quarter, but was still higher than in Israel, probably due to clarification of the Greece's future in the zone. Growth in the US economy sped up substantially in the second quarter, leading to predictions that the US Federal Reserve Board will increase the interest rate there next month (up until the fall in the markets in recent days, that is).
At the same time, the Ministry of Finance noted that the index of non-financial activity indicates improvement in June, after falling for two months. The revenue index gained 2.1% in June, also reversing a two-month decline.
Published by Globes [online], Israel business news - www.globes-online.com - on August 23, 2015
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