Initial estimates show unexpectedly robust 3.8% growth, on an annualized basis, in the third quarter of 2024, the Central Bureau of Statistics reports. GDP rose by 0.9% compared with the preceding quarter.
These latest figures are very encouraging compared with growth figures in preceding quarters. In the second quarter of 2024, GDP rose by just 0.3%, or 1.2% on an annualized basis, reflecting negative per capita growth.
Behind the improved data about Israel's economic performance is a sharp increase in both business output and growth resulting from private consumption. Growth in business product was 5.4% in the third quarter, and the growth in private consumption was 8.6% on an annualized basis. On the other hand, there was a significant decrease of 10% in government spending, indicating a significant cut in government spending, compared with the second quarter.
GDP per capita also showed a positive trend, rising by 2.6% on an annualized basis. When deducting growth from natural population increase of 2% annually, there was still positive growth in the third quarter, unlike in the second quarter. So as the war enters its second year, Israel has avoided going into recession by recording negative growth in two consecutive quarters.
Major rise in imports to Israel
Central Bureau of Statistics data also showed a 21.8% rise in investments in fixed assets in the third quarter. The bulk of the increase in investments was due to high investment in residential construction, which rose by about 30% in the third quarter. Despite the increase, figures for investments in residential construction are still low compared with the figures for the third quarter of 2023.
Exports of goods and services increased by 5.2% in the third quarter of 2024, on an annualized basis. Exports of services rose by 6.6%, while exports of services not including tourism but including startups rose by 3.7% on an annualized basis.
Imports to Israel in the third quarter not including defense imports soared by 26.7%. Total imports of goods and services in the third quarter rose by 9.8%.
Published by Globes, Israel business news - en.globes.co.il - on November 17, 2024.
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