CBS Revises Q1 Growth Rate Upwards a Second Time

Israel’s economy is doing better than anywhere else, even the official statistic recorders believe. The Central Bureau of Statistics announced an upward revision in economic growth for the first quarter, its second revision since making the original growth announcement. The economy grew in the first quarter by 1.7 percent, the CBS said. Originally, that figure had been set at 0.8 percent, and was later revised upwards to 1.3 percent.

With that, exports continued to show a worrying fall, down 13 percent in June compared to a month earlier, the numbers showed. The increased economic activity in the first quarter was due to increased domestic consumption and public expenditure outlays.

Industrial production rose 0.8 percent in the first quarter, following previous quarterly rises of 3.3 percent and 2.8 percent. Personal spending rose 5 percent in the first quarter, following increases of 5.7 percent and 8 percent in the previous two quarters. The upward first quarter revision will positively affect the overall growth rate, the CBS said.

Commenting on the numbers, Ronen Menachem, an executive at Mizrahi-Tefahot Bank, told Calcalist that “the Bank of Israel and the government can be satisfied with its accomplishments. The economy is on a positive path of growth. There is no sign on the horizon of a major recession, so there is no need for the BoI to execute further changes to fiscal policy at this time.”