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Israel economy surges at 4 per cent rate
Life in Israel
Israel economy surges at 4 per cent rate

Israel’s economy shot up in the final three months of 2016 and looks set to have grown annually by four per cent, easily outstripping the central bank’s expectations.

It came on the back of robust exports, but also increased consumer spending.

On an annualised basis, gross domestic product soared 6.2 per cent the fourth quarter, the Central Bureau of Statistics said on Thursday, as it also revised up the annualised third-quarter 2016 growth estimate to 4.2 per cent from 3.6 per cent

Growth for the whole year should now be 4.0 per cent the bureau said, up from its previous 3.8 per cent estimate and well ahead of the Bank of Israel projection for 3.5 per cent, itself a December upgrade from just 2.8 per cent.

Combined with higher-than-expected inflation data, the strong economic growth numbers could push the bank to raise interest rates at a faster pace than it currently foresees.

The year had started off very weak, with a preliminary first-quarter 2016 estimate at just 0.8 per cent - leading the central bank and others to trim their full year forecasts to 2.4 per cent. But the data were revised up sharply as exports rose and the economy grew strongly during the rest of the year.

Click here to read the full article in The Forward

Thursday, February 23, 2017
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