Israel's GDP contracted by 28.7%, on an annualized basis, in the second quarter of 2020, according to the initial estimate of the Central Bureau of Statistics, following a 6.8% contraction in the first quarter due to the Covid-19 crisis. The second quarter figure is the worst quarterly fall in GDP since the establishment of the State in 1948.
After seasonal adjustments, the Central Bureau of Statistics estimates that the Israeli economy has regressed to the same level as the fourth quarter of 2016. The dire statistics are due to the draconian restrictions introduced by the government in efforts to halt the spread of the coronavirus.
In the first half of 2020, the Israeli economy shrank by 10.1% on an annualized basis after growing 3.4% in the second half of 2019.
Per capita private consumption fell by 44.2% in the second quarter of 2020 and business output fell by 33.4%.
Although Israel's negative growth figure for the second quarter looks dire, it is better than those of other Western European and North American countries. According to the OECD, the UK economy shrank 59.8% in the second quarter, Canada 40%, Germany 34.7%, the US 32.9% and Sweden 30.2%.
Published by Globes, Israel business news - en.globes.co.il - on August 16, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020