GDP growth revised upward

The economy grew 0.7% in 2009, faster than originally estimated, but GDP per capita fell.

GDP, in fixed prices, rose by 0.7% in 2009, after rising 4% in 2008 and 5.2% in 2007, the Central Bureau of Statistics reported today. The figure is unexpectedly high, and beats the preliminary estimate of 0.5% growth made last month. The difference may be due to the annualized 4.9% GDP growth achieved in the fourth quarter, which was higher than an earlier Central Bureau of Statistics estimate of 4.4%.

GDP rose by an annualized 3.6% in the third quarter and 1.3% in the second quarter, after falling by 2.7% in the first quarter.

Although GDP rose in 2009, GDP per capita fell, due to Israel's 1.7% population growth rate. GDP per capita fell 1.1% in fixed prices in 2009, after rising 2.2% in 2008 and 3.4% in 2007.

Although the growth rate was a positive surprise, the recession can still be seen in other macroeconomic figures. Investment in fixed assets fell 6% in 2009 and exports of goods and services fell 12.5%. Business product (excluding public services and housing services) fell 0.2%, after rising 4.5% in 2008 and 5.6% in 2007. Manufacturing product fell 6% in 2009 and financial services product fell 3.9%.

On the other hand private consumption rose 1.5% and public consumption rose 2.1%.

Published by Globes [online], Israel business news - - on March 10, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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