In its third estimate of fourth-quarter gross domestic product, Central Bureau of Statistics says economy grew faster than previously thought boosted by government spending, but exports remained weak while consumer spending grew marginally
Israel’s economy grew faster than previously thought in the fourth quarter of 2012 boosted by government spending, but exports remained weak while consumer spending grew marginally.
In its third estimate of fourth-quarter gross domestic product, the Central Bureau of Statistics said on Wednesday the economy grew an annualized 2.6%, above a prior estimate of 2.4% growth. That was the slowest since the first quarter of 2012.
The bureau also revised growth for all of 2012 to 3.2% from 3.1%, still the slowest pace since 2009 but the best of Western countries.
Growth is projected at 2.8% this year, excluding the start of natural gas production at a large well off Israel’s Mediterranean coast, which is expected to add about 1 percentage point to GDP.
The Bank of Israel held its benchmark lending rate at 1.75% for a third straight month on March 24. It cited indications of improvement in economic activity in the first quarter of 2013, but that it was too early to tell whether the improvement would be sustained or whether it was a temporary correction after weak fourth-quarter growth.
In the fourth quarter, exports fell 7.3%. Exports account for about 40% of Israel’s economic activity.
Investment in fixed assets slid 9.1%, while imports sank 16%. Government spending rose 5.6% while private spending grew 1.3%, its slowest pace of the year.
The bureau revised third-quarter 2012 GDP growth to 2.9% from 2.7%.
Source: Ynetnews.com
