Economic growth remained strong in the third quarter, despite some slowing in comparison with the second quarter. Figures published today by the Central Bureau of Statistics show that economic growth in the third quarter of the year was 3.2%.
The growth rate was higher than the forecasts; however, revised figures for the second quarter show 4.9% growth, meaning that the economy actually slowed slightly in the third quarter.
The third quarter figures are an initial estimate, and are likely to change significantly later. One concrete example of this is the growth figures for the first quarter. The initial Central Bureau of Statistics growth estimate published in April was 0.8%. The Central Bureau of Statistics now says that first quarter growth was 3.2%, the same as in the third quarter.
Third quarter growth was led by investment in fixed assets, which spurted 12.2%, while consumer spending, the economy's growth engine over the past two years, rose by a relatively moderate 2.9%. The new figures are particularly welcome for Minister of Finance Moshe Kahlon, because investments were considered an alarming weak point in the economy in previous quarters. Exports of goods and services were again weak, however, dropping 6.3%, compared with a 6.3% rise in imports of goods and services.
Published by Globes [online], Israel business news - www.globes-online.com - on November 16, 2016
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