GDP rose by a fixed-price, seasonally-adjusted annualized 2.2% in the third quarter of 2009, the Central Bureau of Statistics reported today. GDP grew by an annualized 1% in the second quarter, but fell by 3.2% in the first quarter.
The growth rate was faster than expected. The Central Bureau of Statistics attributed the rapid growth to exports of goods and services, and investment in fixed assets. There was also an increase in private consumption net of durable goods. Public consumption also increased.
Business product rose by an annualized 1.6% during the third quarter, after rising by an annualized 1.1% in preceding quarter and falling by 4.9% in the first quarter.
Exports of goods and services rose by 5% in the third quarter, an annualized rate of 21.8%, after rising by 3.5% (an annualized rate of 14.6%) in the preceding quarter. Imports of goods rose by 12.8% in the third quarter, an annualized rate of 61.9%, after rising by 1.2% (an annualized rate of 4.8%) in the preceding quarter.
Private consumption rose by an annualized 8.9% in the third quarter, compared with the second quarter, amounting to 6.9%, growth in consumption per capita. Private consumption per capita rose by annualized 6.4% in the second quarter and fell by an annualized 5.2% in the first quarter.
Private consumption per capita on durable goods rose by 10.9% in the third quarter, an annualized rate of 51.5%, after rising by 4.6% (an annualized rate of 19.6%) in the second quarter.
IBI Investment House chief economist Ayalet Nir told "Globes", "Most of the growth in private consumption was on durable goods, most of which are imported, including cars. This is no surprise. Nonetheless, there was strong improvement in investment in fixed assets, led by the residential construction industry, which is a positive indicator for future growth."
Nir, however, cautioned, "In order to consolidate sustainable economic growth, it should not be based the consumption of cars, but on other components. Improvement in exports of goods and services, and in investment, definitely support further positive growth."
Published by Globes [online], Israel business news - www.globes-online.com - on November 16, 2009
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