The public's perceptions are right: the Central Bureau of Statistics today reported that Israel's GDP slowed to an annualized 2.2% in the third quarter of 2013, from 4.6% in the second quarter and 2.6% in the first quarter.
The slowing growth rate was due to an annualized 12.4% drop in the export of goods and services (excluding diamonds and start-ups) in the third quarter; industrial exports (excluding diamonds) and tourism exports both fell by an annualized 18.9%. Total exports of goods and services fell by an annualized 16.4% in the third quarter, after rising by 2% in the preceding quarter.
Private consumption rose by an annualized 5.6% in the third quarter, amounting to a 3.6% rise in private consumption per capita, down from a 4.5% rise in the preceding quarter. Private consumption per capita in the third quarter was driven by an annualized 18.4% jump in spending on durable goods, after a rise of 9.1% in the preceding quarter, mainly because of a 60% increase in purchases of cars. However, purchases of appliances, such as refrigerators, washing machines, and air conditioners, fell.
Investment in fixed assets rose by an annualized 16.9% in the third quarter, after rising by 4.4% in the preceding quarter, driven by an annualized 61.9% increase in investment in machinery, equipment, and vehicles. Investment in construction was unchanged, but investment in residential construction fell by an annualized 2.9% in the third quarter.
Published by Globes [online], Israel business news - www.globes-online.com - on November 17, 2013
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