Seasonally adjusted GDP in fixed prices fell by an annualized 3.6% in the first quarter of 2009 the Central Bureau of Statistics reported today. The contraction followed a 0.5% drop in GDP in the fourth quarter of 2008. GDP rose by 1.3% in the third quarter of last year.
A commonly used definition of a recession is two consecutive quarter of declining GDP.
The Central Bureau of Statistics attributes the drop in GDP in the first quarter to sharp drop in the export of goods and services and in investment in fixed assets. Business product fell by an annualized 4.2% in the first quarter after falling by an annualized 1.6% in the preceding quarter, and rising by 0.1% in the third quarter of last year.
Private consumption fell by an annualized 4.3% in the first quarter, after falling by an annualized 4.9% in the preceding quarter and by 1.2% in the third quarter of last year. Private consumption of durable goods plummeted by an annualized 6.6% in the first quarter after plummeting by an annualized 35.8% in the preceding quarter. Private consumption per capita fell by an annualized 6% in the first quarter.
Inventory of goods, materials, and work in progress rose sharply in the first quarter of 2009 and the fourth quarter of 2008, including work on foreign orders that have not yet been delivered.
Investment in fixed assets plummeted by an annualized 27.8% in the first quarter, after falling by an annualized 2.4% in the fourth quarter of 2008. Exports of goods and services fell by an annualized 46.3% in the first quarter, after falling by an annualized 44.8% in the preceding quarter. Industrial exports, excluding diamonds, fell by an annualized 47.8% in the first quarter, and service exports, including R&D and software services, fell by an annualized 49.8%.
Imports of goods and services, excluding defense products, planes, ships, and diamonds fell by an annualized 61.9% in the first quarter, after falling by an annualized 2.5% in the preceding quarter.
Residential construction rose by an annualized 3.5% in the first quarter, and non-residential construction rose by an annualized 22.8%.
Published by Globes [online], Israel business news - www.globes-online.com - on May 17, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009