Although Israel's economy continued to recover in October 2009, but signs of a slower pace of recovery, and a cooling of the real estate market, are growing, according to the Ministry of Finance's monthly economic survey for October.
Last week, the Central Bureau of Statistics reported the GDP grew by an annualized 2.2% in the third quarter.
The Ministry of Finance says that exports of goods rose by 6.9% in October, compared with September, but that the Consumer Confidence Index fell by 0.5%, new unemployment claims rose by 1.3%, and trade and services proceeds fell by 0.4%.
The Ministry of Finance says, "National accounts for the third quarter indicate that the recovery is continuing. For the first time in a year, GDP per capita rose, albeit only slightly. Labor market indicators show a mixed picture. Tax receipts fell in October and real estate market activity slowed, as reflected in the number of transactions."
The Ministry of Finance reports a 6.8% drop in the number of apartment purchases in October, compared with September, although prices were unchanged. "The downward trend in the number of transactions continued in October, although it was less than the sharp drop in September. Particularly noteworthy was the 10% drop in purchases of apartments for investment, especially in the Beersheva area.
"An analysis of homebuyers' income in 2009 shows that the sharp increase in the number of transactions from late in the second quarter through September was mostly due to more apartment purchases by low income earners, possibly due to concerns that apartment prices would continue to rise."
Published by Globes [online], Israel business news - www.globes-online.com - on November 24, 2009
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