Israel's economy contracted at 7.1% in Q1

Ben Gurion airport  / Photo: Rami Amichay, Reuters , Reuters

The Israeli economy was hit hard by the coronavirus crisis in the first quarter of 2020, the Central Bureau of Statistics reports.

Israel’s economy contracted by 7.1% on an annualized basis in the first quarter of 2020, the Central Bureau of Statistics has reported in its first estimate. The Central Bureau of Statistics said, "This fall is mainly due to the impact of the coronavirus crisis and is the highest in the past 20 years including the falls in the economy in 2001 and the final quarter of 2008."

Gross Domestic Product without the import of cars shrank by 4.6% in the first quarter. These figures are for January, February and March and do not include the peak of the crisis in April.

Private consumption, which is responsible for 50% of economic activity in Israel, fell 20.3% on an annualized basis in the first quarter. The only area of private consumption that rose was food and household goods, where spending rose 5.8% in the first quarter on an annualized basis. 

Exports of goods and services fell 0.5% in the first quarter on an annualized basis.  

Published by Globes, Israel business news - en.globes.co.il - on May 25, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Ben Gurion airport  / Photo: Rami Amichay, Reuters , Reuters
Ben Gurion airport / Photo: Rami Amichay, Reuters , Reuters
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