Economic growth drops to 3.3% in Q2
Central Bureau of Statistics reports slowdown compared to first quarter of 2011, during which Israeli economy grew by 4.7%
The GDP in the first half of the year rose by 5%, according to an annual calculation, following a 5.7% increase in the last half of 2010 and a 5.6% in the first half of 2010.
Sharp rise in imports, slowdown in exports
The growth in the first half of 2011 was reflected in a sharp rise in imports, which significantly increased the economy's resources (from imports and local production).
The economy's overall resources were up 9% in the first half of 2011, according to an annual calculation, after a 5.8% rise in the second half of 2010 and an 8% rise in the first half.
The increase in the overall resources in the first half of 2011 reflects a sharp rise of 21.3% in the import of goods and services, following a 6.9% increase in the second half of 2010 and a 13.7% increase in the first half.
The personal consumption expenditure (PCE) increased as well – mainly as a result of the rise in household spending on furniture, home appliances and vehicles.
The PCE rose by 5.3% in the first half of 2011, according to an annual calculation, following a 2.7% increase in the consumption per capita in the second half of 2010 and a 2.2% increase in the same period last year.
The rise in the PCE in the first half of the year reflects a 26.6% increase per capita, according to an annual calculation, in household spending on sustainable products – furniture, home appliances (refrigerators, washing machines, air conditioners, etc) and personal cars.
Nonetheless, investment in fixed assets (real estate, equipment and vehicles for business purposes) grew by a slower pace than in the second half of 2010. Investment in fixed assets rose by 16.9% in the first half of 2011, according to an annual calculation, compared to a 25.2% increase in the previous half and a 14.7% increase in the same half last year.
Investment in housing alone grew by 18.4% in the first half of 2011, after a 14.5% increase in the previous half and an 11.1% increase in first half of 200.
A significant slowdown was also felt in the growth pace of exports compared to the first half of 2010 – a trend which may testify to the global crisis' part in the Israeli economy's slowdown.
The export of goods and services in the first half of 2011 rose by 8.1% according to an annual calculation, following a 7.1% increase in the second half of 2010 and a 17.5% increase in the first half of 2010.
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