Israel Q1 growth revised upwards

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The Central Bureau of Statistics has raised the annualized growth estimate for the first quarter from 4.8% to 5%.

The Central Bureau of Statistics today published a third estimate for economic growth in Israel in the first quarter of 2019. The new estimate for annualized growth is 5%, higher than the 4.8% second estimate, but below the 5.2% first estimate. The growth rate was the highest quarterly growth rate since the third quarter of 2017.

The latest estimate for the increase in GDP excluding net taxes on imports, means that it was not affected by the increase in revenue from import taxes resulting from the increase in tax revenues from taxes on vehicle purchases, is 3.6%, up from 3.3% in the second estimate published by the Central Bureau of Statistics.

Business product rose 4.2% in the first quarter, following rises of 2.3% and 2.7% in the fourth and third quarter of 2018, respectively. The latest figure is higher than the 3.9% first quarter increase in business product in the previous estimate, but below the first estimate of 5.8%.

The latest estimate for the annualized first quarter increase in exports is 4.9%, compared with 3.9% in the earlier estimate, while private consumption was up 7% (6.6% in the preceding estimate), amounting to a 5.1% per capita increase, following rises of 5.2% and 1.4% in the fourth and third quarter of 2018, respectively. The latest estimate for the annualized rise in imports is 8.2%, down from a 14.6% increase in the previous estimate, but higher than the 7.6% increase in the first estimate.

Per capita spending on current consumption (food, services, housing, fuel, home maintenance, overseas travel, etc.) was down by annualized 0.4% in the first quarter, compared with a 4.2% increase in the fourth quarter of last year.

Spending on vehicle purchases for private use skyrocketed by an annualized 598.7% (62.6% calculated quarterly) in the first quarter of this year, following a 40.4% annualized in increase (8.9% calculated quarterly) in the preceding quarter.

Published by Globes, Israel business news - en.globes.co.il - on July 16, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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Growth Photo: Shutterstock
Growth Photo: Shutterstock
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