In the first quarter of 2023, Israel experienced a low economic growth rate compared to the previous year, although not as low as initially measured.
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Israel’s Central Bureau of Statistics (CBS) on Sunday published data for the second quarter, which indicates that Israel’s gross domestic product (GDP) increased by 0.8%, equivalent to 3.1% on an annual basis, compared to the previous quarter's growth rate. This is in contrast to the initial estimate published in May, which indicated a 2.5% increase.
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The new data shows that private consumption spending decreased by 1.7% in the first quarter of 2023 on an annual basis
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According to the current estimate, Israel’s GDP per capita increased by 0.7% annually, compared to 0.1% in the initial estimate in May. According to the CBS, the new data is due to "an update in merchandise exports following the integration of industrial export index data."
The new data also shows that private consumption spending decreased by 1.7% in the first quarter of 2023 on an annual basis, following a 10.2% increase in the fourth quarter of 2022, primarily due to a decline in the import of private vehicles, after it saw a significant increase in the previous quarter.
However, private spending increased by 0.3% annually, which is also a low figure. Private spending decreased by 4% on an annual basis in the first quarter of 2023, compared to the fourth quarter of 2022.
According to the new data, exports of goods and services increased by 3.1% in the first quarter of 2023 on an annual basis, instead of the 0.4% published in the previous estimate, following a 6.5% decrease in the fourth quarter of 2022. Export of services increased by 13.7% annually, after a 10.0% decrease in the fourth quarter of 2022.
According to the CBS, the changes in private consumption expenditure per capita in the first quarter of 2023 reflect an increase of 0.8% in ongoing private consumption (spending on food, beverages and tobacco, utilities, housing, fuel and electricity, and consumer products).
Spending on non-durable goods per capita (expenditure on clothing and footwear, household items, small electrical appliances, entertainment products, and personal items) decreased by 11.0% on an annual basis in the first quarter of 2023.
However, expenditure on clothing and footwear increased by 8.5% annually, while expenditure on other non-durable goods decreased by 10.1%.
Expenditure on durable goods per capita decreased by 5.8% annually. Expenditure on private vehicles decreased by 80.0% annually (33.1% on a quarterly basis), while expenditure on the purchase of electrical equipment and other tools increased by 20.2% annually (4.7% on a quarterly basis).