Israel's economy shrank only 2.4% in 2020

Benjamin Netanyahu, Yisrael Katz, pre-Covid-19 / Photo: Knesset spokesperson

The GDP contraction was less than the Bank of Israel forecast of 3.7% and considerably below the Euro-bloc where the economy shrank 5% last year.

Israel's Gross Domestic Product (GDP) shrank by 2.4% in 2020, the Central Bureau of Statistics has reported. This exceptional contraction was caused by the Covid-19 pandemic and the restrictions imposed by the government to halt the spread of the virus. Last year's contraction followed 3.4% and 3.5% growth in 2019 and 2018 respectively.

However, the contraction was less than the Bank of Israel forecast of 3.7% and considerably below the Euro-bloc where the economy shrank 5%.

The economy grew 6.3% in the fourth quarter of 2020 fueled by an 18.2% rise in private consumption, a 66.1% rise in investments in fixed assets, and 26% rise in public expenditure. However, the economy fell 0.4% in the fourth quarter of 2020 compared with the corresponding quarter of 2019.

Published by Globes, Israel business news - en.globes.co.il - on February 16, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Benjamin Netanyahu, Yisrael Katz, pre-Covid-19 / Photo: Knesset spokesperson
Benjamin Netanyahu, Yisrael Katz, pre-Covid-19 / Photo: Knesset spokesperson
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