Gross Domestic Product Falls in First Half of 2017

Israel’s gross domestic product fell in the first half of 2017, compared to the first six months of 2016 and 2015. Data from the Central Bureau of Statistics shows that growth in the first half of this year stood at annualized 2.1 percent, compared to 4.6 percent in the first six months of 2016, and 4.7 percent during the same period of 2015.

The slower growth was also reflected in specific quarterly statistics. During the second quarter of this year, growth was 2.4 percent. In the second quarter of 2016, growth was rated at 4.4 percent over the previous quarter’s rate.

The second quarter’s GDP increase was reflected largely in growth in personal consumption by 5.9 percent over the same statistic in the previous year, but was balanced out by a reduction in imports by 6.5 percent. Public investment increased 3.1 percent, and investments in fixed assets, including buildings and natural resources, increased 11 percent over the previous year.

Personal consumption rose 1.1 percent in the first quarter of 2017. In the first two quarters of 2016, the increase in personal consumption was 2.1 percent and 5.2 percent respectively. The lower personal consumption rate this year was due to a 14.1 percent reduction in the purchase of large appliances and furniture by Israelis, and a 39.5 percent decrease in the number of vehicles purchased by households, the CBS said.