Last Tuesday the Central Bureau of Statistics said in a report that the economy expanded at an annualized pace of 2.2% during the last six months of year 2015.
Accordingly, it is the lowest six-month growth since the financial crisis took place on 2009. Israel’s economy went down by 1.6%.
After the global financial crisis, the economic growth of Israel had seemingly expanding at rapid pace. For instance, during the first half of 2011, the economic expansion was at 5% pace following the 5.7% expansion on the second half of 2010 and 5.6% on the first half of the same year.
On that note, Israel’s economy was said to have an annual potential growth of 5% in average.
During the 2015’s last quarter, the Israel’s economy expansion moved to 3.3% pace against the 2.5% in the third quarter of the same year, and on the second quarter 0.8% and 2.8% on its first quarter.
What is annualized pace growth rate mean? It means “the rate at which an economy would grow had it maintained that pace for an entire year.”
Idan Azoulay, CEO of Epsilon Mutual Funds said that the growth was greatly affected by the increase of public consumption that pulled an increase of government expenditure enabled by the excess of revenues last year. Also he noted that the private consumption began increasing following the steady mode for the past year making economists cautiously optimistic.
For the year 2015, the bureau of statistics reported an indication of 5.2% pace of public consumption growth and a 3% pace on the private consumption. On the aspect of exports of goods and services the expansion was indicated at 2.2% and 0.9% pace in the fixed assets and in the imports of goods and services, the expansion pace was at 5.2%
Additionally, the agricultural products exports as well as diamond exports dropped by at a significant figure which greatly affect the country’s economic growth.
At the moment, Finance Ministry and the Prime Minister’s Office have not yet said a word regarding the slow growth of Israel’s economy.