National accounts figures released by the Central Bureau of Statistics today revise the growth figures published a month ago sharply, almost unprecedentedly, changing the gloomy macro picture that emerged from May's figures.
According to the Central Bureau of Statistics, Israel's gross domestic product (GDP) rose at an annual rate of 2.7% (seasonally adjusted at fixed prices) in the first quarter of 2014, rather than at 2.1% as reported a month ago. This still represents a slowdown in the rate of growth since the rate recorded in the fourth quarter of 2013, which was 3.2%, after a second adjustment published this month, but it is a much less drastic slowdown than appeared to be the case in May. The growth rate for the third quarter of 2013 has been adjusted downwards, to just 1.9%.
An even more important revision reported by the Central Bureau of Statistics today is in private sector product, the engine of the economy. The initial estimate put annualized growth in this figure at just 0.4% in the first quarter. According to the second estimate, the growth rate was a much higher 1.5%. Here too, there has still been a slowdown since the fourth quarter of 2013, when the private sector product annual growth rate was 2.5% (revised upwards this month).
Figures for private consumption have also been sharply revised. The initial estimates gave an annualized 2% decline in private consumption in the first quarter, which means a 4% decline in per consumption per capita, known as the standard of living. The updated estimate indicates an annualized decline of just 0.6%, which means a per capita decline of 2.4%. In this case too, the significance of the figures is a slowdown, but not to the extent believed to be the case a month ago.
Published by Globes [online], Israel business news - www.globes-online.com - on June 16, 2014
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