Growth slows on weak PC demand

ISRAEL - In Brief 16 May 2023 by Jonathan Katz
GDP growth slows in Q1 Headline GDP growth slowed to 2.5% saar in the 1st quarter of 2023, following growth of 5.3% in Q422. Private consumption declined by 1.7% mostly due to a shift in new vehicle purchases to Q422 before higher taxation came into effect. Excluding new vehicles, private consumption expanded by a mere 0.3%. Investments expanded by 14.7%, high service exports by 9% (although manufacturing exports declined by 7%) and government consumption increased by 1.8%. Total Imports declined more sharply than exports (-5.8% compared to -3.5%). A sharp decline in inventories shaved off 2.3% from GDP growth in Q123. Economic growth appears to be slowing from rapid expansion in 2022 (6.5%), with private consumption moderating due to monetary tightening and wage erosion. We expect growth to reach 2.5% this year. This deceleration is to be expected with the output gap basically at zero and global demand weakening. We still expect a 0.25% rate hike on May 22nd due to the spike in inflation in May, but do not envision further tightening.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this or its contents.