Israel's Q3 growth figures unexpectedly robust

Herzliya seven stars shopping mall credit: PR
Herzliya seven stars shopping mall credit: PR

Initial estimates show 3.8% growth, on an annualized basis, in the third quarter of 2024, the Central Bureau of Statistics reports.

Initial estimates show unexpectedly robust 3.8% growth, on an annualized basis, in the third quarter of 2024, the Central Bureau of Statistics reports. GDP rose by 0.9% compared with the preceding quarter.

These latest figures are very encouraging compared with growth figures in preceding quarters. In the second quarter of 2024, GDP rose by just 0.3%, or 1.2% on an annualized basis, reflecting negative per capita growth.

Behind the improved data about Israel's economic performance is a sharp increase in both business output and growth resulting from private consumption. Growth in business product was 5.4% in the third quarter, and the growth in private consumption was 8.6% on an annualized basis. On the other hand, there was a significant decrease of 10% in government spending, indicating a significant cut in government spending, compared with the second quarter.

GDP per capita also showed a positive trend, rising by 2.6% on an annualized basis. When deducting growth from natural population increase of 2% annually, there was still positive growth in the third quarter, unlike in the second quarter. So as the war enters its second year,  Israel has avoided going into recession by recording negative growth in two consecutive quarters.

Major rise in imports to Israel

Central Bureau of Statistics data also showed a 21.8% rise in investments in fixed assets in the third quarter. The bulk of the increase in investments was due to high investment in residential construction, which rose by about 30% in the third quarter. Despite the increase, figures for investments in residential construction are still low compared with the figures for the third quarter of 2023.

Exports of goods and services increased by 5.2% in the third quarter of 2024, on an annualized basis. Exports of services rose by 6.6%, while exports of services not including tourism but including startups rose by 3.7% on an annualized basis.

Imports to Israel in the third quarter not including defense imports soared by 26.7%. Total imports of goods and services in the third quarter rose by 9.8%.

Published by Globes, Israel business news - en.globes.co.il - on November 17, 2024.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.

Herzliya seven stars shopping mall credit: PR
Herzliya seven stars shopping mall credit: PR
Caesarstone kitchen credit: Caesarstone Caesarstone bucks Nasdaq as tariffs boost potential

The Israeli quartz countertop manufacturer company has fallen on hard times due to Chinese rivalry but tariffs could boost its revenue.

ZIM ship credit: ZIM Trump's tariffs torpedo ZIM's share price

ZIM's share price fell 16.4% on Wall Street on Thursday and a further 7.2% on Friday, closing with a market cap of $1.5 billion, wiping out all its gains in 2025.

Israeli apartments Credit: Shutterstock Apartments sold and rented

A selection of recent real estate deals in Israel in Tel Aviv, Holon, Rehovot, Kiryat Tivon, Shlomi and Beersheva.

THAAD anti missile system credit: The US Army Ralph Scott Wikimedia US deploys more THAAD, Patriot batteries in Israel - report

Amid rising regional tensions the US is bolstering Israel's air defense, Saudi state-owned TV channel Al Arabiya reports.

Tel Aviv Stock Exchange credit: Shutterstock TASE tumbles in Wall Street's wake

Dual-listed stocks have again been hard hit, but the banks are also down sharply.

Donald Trump and Benjamin Netanyahu credit: Avi Ohayon Netanyahu due in Washington to discuss tariffs

According to news website Axios, Prime Minister Benjamin Netanyahu will be the first leader to meet President Trump after the latter's announcement of sweeping import tariffs.

Yoni Assia CEO eToro Credit: PR eToro defers IPO amid market turmoil

The online trading platform had planned to begin meetings with investors this week.

Minister of Finance Bezalel Smotrich credit: Shlomi Yosef Smotrich meets wrong man in Washington

Minister of Finance Bezalel Smotrich tried to persuade Secretary of the Treasury Scott Bessent to soften the tariff blow on Israel - only Bessent isn't responsible for the matter.

Unframe founders credit: Yossi Yarom Israeli AI enterprise platform co Unframe raises $50m

Unframe’s turnkey AI solutions enable companies to solve any enterprise AI use case at scale with fully functional, customized AI solutions for businesses in a matter of hours, rather than months.

Combatica credit: Combatica Combatica launches next-gen VR AI training platform

The Israeli company's virtual reality platform includes 50 AI generated scenarios, seven maps and even situations for operating night vision.

Shekel credit: Shutterstock Vladirina 32 Shekel volatility after US tariffs announcement

The shekel is weakening sharply against the euro, which is gaining following the unveiling of Donald Trump's tariffs plan.

Minister of Finance Bezalel Smotrich credit: Noam Moskovitz Knesset Spokesperson Treasury assesses potential damage to Israel's US exports

Israel will be charged a higher tariff on its exports to the US - its biggest export customer - than Turkey and the UAE.

Iranian flag credit: Shutterstock Why inflation haunts Iran

With a month-on-month increase of 3.3% and an annual rate of 37.1%, inflation reflects the struggles of millions of Iranians.

APM merges with lawyers from Doron, Tikotzky Kantor, Gutman credit: Eyal Merilos APM merges with 12 lawyers from Doron, Tikotzky Kantor, Gutman

With the addition of these 12 lawyers, Amit Pollak Matalon & Co. will now have 135 lawyers.

US President Donald Trump credit: Reuters Sipa USA Israel on list as Trump unveils tariffs

Relatively low reciprocal tariffs will be imposed on Israeli goods sold in the US.

Deflated unicorn credit: Shutterstock Big Tech 50 reports more huge falls in startup valuations

Israeli R&D partnership Big Tech 50 reports that an investment of $2 million in Orcam made in 2021, shrank to just $31,000 at the end of 2024.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018