Israel’s per capita GDP fell by an annualized 0.9% in the second quarter of 2024, the Central Bureau of Statistics reports. This represents a sharp revision of the Central Bureau of Statistics’ initial estimate of a 0.4% annualized drop in the second quarter. The figures are still estimates, and may be subject to further revision.
GDP rose by 0.7% in the second quarter of this year in comparison with the first quarter, but private sector product fell by 2.7%. This was compensated for by a steep rise in government spending, with public sector consumption up 8.2% in comparison with the first quarter.
GDP fell by 1.5% in comparison with the second quarter of 2023. Private sector product fell by 5.1%, while public sector consumption, i.e., government spending, swelled by 22.9%.
Exports of goods and services (excluding diamonds and acquisitions of startup companies) fell by an annualized 8.4% in the second quarter, while imports (excluding defense imports and diamonds) fell by 9.3%.
The figures indicate a weakening economy in Israel, particularly the private sector. The GDP figures are artificially being prevented from falling dramatically by government spending on defense and on the civilian aspects of the war.
Unemployment in August was at a historical low, at 2.6%. This is the lowest unemployment rate for over fifty years, since the Yom Kippur War of 1973. Even after seasonal adjustment, the unemployment rate last month was 2.7%. More than anything, the low unemployment rate indicates a shortage of workers, because of mass drafting of IDF reservists.
Published by Globes, Israel business news - en.globes.co.il - on September 16, 2024.
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