Economic Indicators

Israel GDP grows 2.8% in Q3 ahead of expected contraction in Q4 due to war

2023.11.16 08:46


© Reuters. FILE PHOTO: Israeli national flags flutter near office towers at a business park also housing high tech companies, at Ofer Park in Petah Tikva, Israel August 27, 2020. REUTERS/Ronen Zvulun/File Photo

By Steven Scheer

JERUSALEM (Reuters) – Israel’s economy grew solidly in the third quarter, although less than estimated, data from the Central Bureau of Statistics showed on Thursday, ahead of an expected weak end to the year due to Israel’s war with Palestinian militant group Hamas.

Gross domestic product (GDP) grew an annualised 2.8% in the July-September period from the prior three months, compared with a forecast in a Reuters poll of analysts for a 3.8% expansion.

However, on a per capita basis, GDP grew 0.9%.

The economy grew 3.3% in the second quarter, compared with 3.1% in a prior estimate.

Israel’s economy is expected to contract in the fourth quarter due to the war, and translate to a 2.3% growth rate for 2023, according to the Bank of Israel. S&P Global Ratings this week forecast a 5% contraction during the last three months of 2023.

Despite a weakening economy that will likely see a hit to consumer spending and investments, the central bank has suggested it would not lower interest rates during the war.

It has cited a view that Israel’s risk premium remains high and a rate cut from the current 4.75% could further weaken the and reignite inflation.

Policymakers have left short-term borrowing costs unchanged the last three decisions after an aggressive run of tightening that took the benchmark interest rate from 0.1% in April 2022 to 4.75% in May 2023.

On Wednesday, the bureau said Israel’s annual inflation rate eased to 3.7% in October from 3.8% in September and the central bank has said it was determined to return the rate to its 1-3% target. The Bank of Israel’s next rate decision is on Nov. 27.

In the third quarter, private spending – more than half of economic activity – grew 1.8%, while exports rose 8.8%, investment increased 1.2% and government spending was up 5.9%. Imports fell 0.9%.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 98,613.42 0.23%
ethereum
Ethereum (ETH) $ 3,467.66 4.37%
tether
Tether (USDT) $ 1.00 0.16%
solana
Solana (SOL) $ 262.51 2.32%
bnb
BNB (BNB) $ 674.44 8.07%
xrp
XRP (XRP) $ 1.57 9.29%
dogecoin
Dogecoin (DOGE) $ 0.461208 14.21%
cardano
Cardano (ADA) $ 1.13 23.64%
usd-coin
USDC (USDC) $ 0.999186 0.19%
staked-ether
Lido Staked Ether (STETH) $ 3,464.60 4.18%
tron
TRON (TRX) $ 0.219111 9.59%
avalanche-2
Avalanche (AVAX) $ 43.44 11.14%
shiba-inu
Shiba Inu (SHIB) $ 0.000027 9.92%
the-open-network
Toncoin (TON) $ 6.28 14.06%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,111.38 4.69%
stellar
Stellar (XLM) $ 0.499849 69.84%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 98,434.37 0.08%
polkadot
Polkadot (DOT) $ 8.81 39.91%
chainlink
Chainlink (LINK) $ 17.77 16.24%
bitcoin-cash
Bitcoin Cash (BCH) $ 529.76 9.36%
sui
Sui (SUI) $ 3.62 3.33%
weth
WETH (WETH) $ 3,469.15 4.57%
pepe
Pepe (PEPE) $ 0.000022 6.38%
leo-token
LEO Token (LEO) $ 8.64 2.63%
near
NEAR Protocol (NEAR) $ 6.49 14.84%
litecoin
Litecoin (LTC) $ 103.82 15.24%
aptos
Aptos (APT) $ 13.17 10.22%
uniswap
Uniswap (UNI) $ 10.99 16.39%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,650.07 4.41%
hedera-hashgraph
Hedera (HBAR) $ 0.154494 17.71%
internet-computer
Internet Computer (ICP) $ 11.82 16.15%
crypto-com-chain
Cronos (CRO) $ 0.19844 5.25%
usds
USDS (USDS) $ 0.99945 0.07%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.59855 29.49%
ethereum-classic
Ethereum Classic (ETC) $ 30.71 9.75%
render-token
Render (RENDER) $ 8.15 12.32%
kaspa
Kaspa (KAS) $ 0.161825 8.75%
bittensor
Bittensor (TAO) $ 539.43 9.51%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.23%
bonk
Bonk (BONK) $ 0.00005 0.74%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.43 15.64%
vechain
VeChain (VET) $ 0.044705 36.12%
arbitrum
Arbitrum (ARB) $ 0.871496 9.30%
whitebit
WhiteBIT Coin (WBT) $ 24.64 0.44%
dogwifcoin
dogwifhat (WIF) $ 3.49 11.03%
dai
Dai (DAI) $ 0.999538 0.31%
cosmos
Cosmos Hub (ATOM) $ 8.67 17.67%
mantra-dao
MANTRA (OM) $ 3.74 2.75%
filecoin
Filecoin (FIL) $ 5.43 16.45%
blockstack
Stacks (STX) $ 2.13 11.09%