In fixed prices and excluding seasonal factors, Israel's GDP rose by an annualized 2.2% in the second half of 2018, according to an initial estimate published today by the Central Bureau of Statistics. The figure is substantially less than the 3.4% growth reported in the first half of 2018 and the 4.3% growth reported in the second half of 2017.
Factors having a negative impact on growth included a standstill in exports of goods and services and a decline in investments and spending on private consumption, especially vehicles.
Growth was an annualized 3.1% in the fourth quarter and an annualized 2.4% in the third quarter, but only 0.9% in the second quarter. Spending on private consumption rose by an annualized 2.1% in the second half of 2018, following a 4.1% rise in the first half of the year, while per capita spending on private consumption stayed even in the second, following a 2.1% increase in the first half.
Per capita spending on durable goods dropped by an annualized 17%, following a 12.9% increase in the first half of 2018 and a 2.6% increase in the second half of 2017. Per capita purchases of vehicles fell by an annualized 35.2% in the second half of 2018, following an annualized 46.7% increase in the first half, and per capita purchases of household equipment (refrigerators, washing machines, air-conditioners, etc.) fell by 1.7% in the second half of 2018, following a 2.8% fall in the first half of the year. Per capita spending on furniture, jewelry, and watches fell by 5.5% in the second half of 2018, following a 7.3% drop in the first half of the year.
Per capita current spending rose by an annualized 1.4% in the second half of 2018, following a 0.9% increase in the first half of the year. Per capita spending rose 0.5% on miscellaneous services (transportation and communications, personal services, and education, welfare, cultural and entertainment services); 5.1% on miscellaneous industrial products for private consumption; 1.0% on fuel, water, and electricity; and 2.7% on food, beverages, and tobacco.
Per capita spending rose 3.4% on semi-durable goods and 2.7% on clothing and footwear in the second half of 2018.
Investment in fixed assets (housing, construction sectors, equipment, and transportation tools) fell by an annualized 4.1% in the second half of 2018, following a 1.8% rise in the first half of 2018 and a 6.3% rise in the second half of 2017.
Investment in economic sectors, excluding ships and airplanes, fell by an annualized 5.2% in the second half of 2018, following an 8.8% increase in the first half of 2018. Investments were down 23.3% in machinery and miscellaneous equipment (not including information and communications technology equipment (ICT)), while investments in ICT equipment rose 6.0%. Investment in land transportation tools fell by an annualized 39.9%, following a 28.9% increase in the first half. Investments in intellectual property rose 7.5%, following a 9.2% rise in the first half of 2018.
Investment in non-residential construction and other construction work rose 12.6%, after a 10.2 increase in the first half of 2018.
Investment in residential construction was down by an annualized 0.3%, following an 11.1% fall in the first half of 2018.
Spending on public consumption rose 4.2% in the second half of 2018, following a 5.9% increase in the first half of the year and a 1.8% rise in the second half of 2017. Spend on civilian consumption rose 6.0%, while spending on defense consumption fell 5.1% in the second half of the year.
Exports of goods and services (excluding diamonds and startups) grew by an annualized 0.6% in the second half of 2018, following a 3.0% rise in the first half of the year and an 11.6% increase in the second half of 2017. Industrial exports (excluding diamonds), were down 3.1%, while annualized exports of tourist services rose 4.8%, exports of miscellaneous services rose 4.4%, and agricultural exports were up 4.4%.
Diamond exports rose by an annualized 8.0%, and exports of startups increased.
Imports of goods and services (excluding defense imports, ships, airplanes, and diamonds) fell by an annualized 0.7% in fixed prices in the second half of 2018, following a 3.1% rise in the first half of 2018. Imports of civilian goods were down 1.5%, imports of miscellaneous services, excluding overseas travel, rose by 1.0%,and spending on overseas travel fell 2.8%.
Published by Globes, Israel business news - en.globes.co.il - on February 17, 2019
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