Israel Matzav

Israel's economy grew 4.5% in 2nd quarter

I have to tell you that every time I see one of these stories, I call all my friends and we all say "huh?"

Bloomberg is reporting that Israel's economy grew 4.5% in the second quarter. This time, I think I get why I haven't really felt it: Most of the growth was not in something that affects me directly.

Growth accelerated from a revised 3.7 percent in the first quarter, the Jerusalem-based Central Bureau of Statistics said today on its website. The statistics bureau reported on Sept. 16 that the economy grew a preliminary 4.6 percent in the three months through June and 3.8 percent in the first quarter.

Israel’s economy will probably expand 4 percent this year, powered by exports, consumer spending and home construction, the Central Bureau of Statistics said today. In 2009, the expansion was 0.8 percent.

“Growth in the second quarter was very strong,” Yaniv Hevron, head of macro-strategy at Ramat Gan, Israel-based Excellence Nessuah Investment House Ltd., said by telephone before the announcement. “The third quarter will be affected by a slowing in foreign trade, due to the moderation in growth in the U.S. and Europe.”

The benchmark TA-25 stock index has gained more than 20 percent in the past 12 months, led by Avner Oil Exploration LP and Delek Drilling-LP, two of the partners in gas fields off Israel’s coast.

Exports climbed 22.7 percent in the second quarter, the bureau said today. Residential building rose 17.8 percent, and private consumption increased 8.5 percent, it said.

Bank of Israel Governor Stanley Fischer raised the benchmark interest rate at the end of September to 2 percent, the sixth increase in 13 months, citing a surge in housing prices.

It's good to see the economy is growing. People with money to spend need to hire lawyers. Eventually.

posted by Carl in Jerusalem @ 6:41 PM