Israel's GDP rose by an annualized 1% in the second quarter of 2009, although it contracted by 1.8% in the first half, the Central Bureau of Statistics announced today in its second estimate of the national accounts. The figures are the same as the initial estimate published a month ago.
The Central Bureau of Statistics figures indicate that the recession is over, at least on the basis of the definition of recession as two consecutive quarters of GDP contraction. Israel's GDP shrank by an annualized 1.6% in the fourth quarter of 2008 and by 3.3% in the first quarter of 2009.
GDP growth in the second quarter was driven by all uses: export of goods and services rose 26.4%, public consumption (excluding defense imports) rose by 21%, private consumption rose by 5.6%, and investment in fixed assets rose by 2%.
Israel's GDP is expected to growth by 0.1% in 2009, compared with the average of a 4% contraction by OECD countries, forecasts included in the 2009 Statistical Abstract.
The Central Bureau of Statistics also predicts that business product will fall by 0.7% in 2009, exports will fall by 10.5%, and investment in fixed assets will fall by 9.6%. The Central Bureau of Statistics also expects that housing starts will increase by 4.7%, public consumption will grow by 1%, and private consumption will grow by 0.5%.
Published by Globes [online], Israel business news - www.globes-online.com - on September 16, 2009
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