Breaking News

Israel first-quarter GDP revised higher to 1.4 percent but still at two-year low

Economic IndicatorsJul 16, 2017 08:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Israel first-quarter GDP revised higher to 1.4 percent but still at two-year low

By Steven Scheer

JERUSALEM (Reuters) - Israel's economy grew at an annualized 1.4 percent in the first quarter, slightly higher than previously thought due to an improvement in exports, but still its slowest pace in almost two years.

In a second estimate last month, the Central Bureau of Statistics had said gross domestic product <ILGDP=ECI>

grew 1.2 percent in the first three months of the year, down from a preliminary 1.4 percent rise -- well below a Reuters forecast of 3.7 percent.

It was the slowest growth rate since the second quarter of 2015. On a per capita basis, GDP in the quarter fell an annualized 0.5 percent.

Fourth-quarter growth was revised to an annualized 4.7 percent from 4.6 percent, the bureau said on Sunday.

Growth in the final three months of 2016 had been boosted by one-off factors including a spike in sales of vehicles that occurred before the tax hike -- which ties the tax payable at purchase to the car's carbon emissions -- at the start of 2017. This also negatively impacted the first three months of 2017.

Analysts said given the distortions, a more accurate figure was GDP excluding net taxes on import -- which eliminates much of the one-time auto effect. It rose an annualized 3.3 percent in the first quarter, revised up from a previous 3.1 percent.

Citing expectations that exports look to improve as global trade strengthens, the Bank of Israel last week raised its economic growth estimate for 2017 to 3.4 percent from a previous 2.8 percent and left its 2018 forecast unchanged at 3.3 percent. Growth was 4 percent in 2016.

In the first quarter, exports - which comprise more than 30 percent of Israeli economic activity - grew 8.7 percent compared with a 7.8 percent gain in the prior estimate. Private spending dipped 1.1 percent versus a 1.7 percent drop, while investment in fixed assets fell by 3.4 percent. Imports shed 9.3 percent and government spending was up 2.6 percent.

The data comes after the bureau said that Israel's annual inflation rate fell 0.2 percent in June from a 0.8 percent rise in May.

Israel first-quarter GDP revised higher to 1.4 percent but still at two-year low

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email