Israel's economy grew at just 2% in Q2

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Growth was cut by a steep drop in new car sales in the second quarter, the Central Bureau of Statistics reports.

The Israeli economy grew at only 2% in the second quarter of the year, on an annualized basis, according to an initial estimate published by the Central Bureau of Statistics.

The Central Bureau of Statistics reported 4.8% growth in the first quarter, affected mainly by a wave of vehicle purchase. Car purchases also affected the growth figures in the second quarter; excluding the effect of these purchases, economic growth would have totaled 3.6% in the first quarter and 3.0% in the second quarter.

A breakdown of growth factors shows that consumer spending rose 0.5% in the second quarter, while investment in fixed assets was down 6.6% and public spending rose 5.2%. Growth in the first half of 2018 was 4% according to the Central Bureau of Statistics' first estimate.

Last month the Ministry of Finance already warned that second quarter growth would be between 2% and 2.5%, so today's figures come as no surprise.

Published by Globes [online], Israel business news - www.globes-online.com - on August 16, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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Growth Photo: Shutterstock
Growth Photo: Shutterstock
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