CBS: Economy grew at 4.7% in Q2

Port2port News Service
Aug 23, 2010

Growth in the economy is accelerating, having grown by 3.6% in the first quarter of 2010 and 4.3% in the fourth quarter of 2009

The Central Bureau of Statistics (CBS) reported last week that Israel’s economy grew at an annualized rate of 4.7% in the second quarter of 2010, thanks to strong exports and consumer spending.

The inflation rate fell in July from 2.4% to 1.8%, its lowestlevel in almost three years. Growth in the economy is accelerating, having grown by 3.6% in the first quarter of 2010 and 4.3% in the fourth quarter of 2009.

Contributing factors to the Israeli economy's surprisingly strong growth in the second quarter of 2010 were a 15.8% rise in exports of goods and services, which make up 40-45% of economic activity, compared with the preceding quarter, an 8.7% rise in private consumption, 10.9% rise in investments in fixed assets and a 2.8% rise in public expenditure not including defense, on an annualized basis. Imports rose 8.3%.