Israel’s economy grew by 1.2% in the second quarter, on an annualized basis. This gives negative GDP per capita growth of 0.4% on an annualized basis, when adjusted for population growth.
Private consumption, which rose by 12% on an annualized basis and 2.9% in the second quarter led the growth and has been rising since the start of the year, after falling sharply during the fourth quarter of 2023, at the start of the war.
The rise in GDP stemmed from government spending, which rose by 8.2% in the second quarter, while there was a 1.9% fall in business production. The figures indicate a moderation in consumption in the Israeli economy after the ‘rebound’ in the first quarter, when GDP growth was 14.1% on an annualized basis.
Israel's economy grew by 2% in 2023, reflecting negative GDP per capita growth of 0.1%, because of population growth last year. This follows GDP growth of 6.5% in 2022. With the exception of 2020 when the Covid pandemic hit, and Israel's economy contracted by 2.5%, the last time the economy contracted was in 2009, following the global financial crisis.
Published by Globes, Israel business news - en.globes.co.il - on August 18, 2024.
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