Headline growth steady, but the devil was in the details

ISRAEL - In Brief 16 Aug 2023 by Jonathan Katz
GDP growth surprised on the upside, reaching 3% saar in Q223 (our forecast was 2.8%, Bloomberg survey: 2.3%). The devil was in the details. A closer look point to a decelerating economy. Industrial exports actually declined by 8.5% saar and high-tech service exports by 1.8%. Total exports declined by 2.6% while total imports declined sharply by 11.2%. This was a net contributor to GDP growth. Private consumption growth reached 1.9% following a decline of 1.4% in Q123. Investments in residential construction was up 2.2%, and non-residential investments declined by 0.3%. Government consumption increased by 3.6%. Q123 GDP growth was revised slightly downward to 2.9% from 3.2%. Growth is actually decelerating, with both private consumption weak and exports contracting, but a more rapid decline in imports (also an indicator of slowing growth going forward) contributed to GDP growth. Slowing growth will support rate stability in coming months.

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.