Israeli Economy Grows 4.6%, Below Estimate
By Alisa Odenheimer - Jul 17, 2011 6:12 AM ET .
Israel’s economy expanded an annualized 4.6 percent in the first quarter, slower than previously estimated.
Growth eased from a revised 7.7 percent in the fourth quarter, the fastest in four years, the Jerusalem-based Central Bureau of Statistics said in an e-mailed statement today. The previous estimate for the first quarter was 4.8 percent.
“Even if it’s a little lower than we thought, this is still a very nice rate compared to the rest of the world,” Amir Kahanovich, chief economist at Clal Finance Investment Management Ltd. in Tel Aviv, said in a telephone interview. “It’s harder to grow quarter on quarter after you have a very big jump like we had in the fourth quarter.”
Economic growth may be slower this year than the Bank of Israel’s forecast of 5.2 percent because the expansion in the second quarter may have been less than expected, Governor Stanley Fischer said July 7. Fischer held the benchmark interest rate at 3.25 percent in June after four increases this year, citing concern over slower U.S. economic growth and the worsening of debt risks in Europe.
Fischer is likely to hold the benchmark rate at the end of the month according to 13 of 15 economists surveyed by Bloomberg at the end of June and beginning of July.
Government Revenue
Israeli imports declined for the first time in four months in June, the statistics bureau said July 11. Government revenue in June was 15 billion shekels ($4.4 billion), 1.1 billion shekels below the government forecast, the Finance Ministry said on July 6.
Consumer prices rose 0.4 percent in June and annual inflation accelerated to 4.2 percent from 4.1 percent, the sixth month it has exceeded the government’s 1 percent to 3 percent target range, the statistics bureau said July 15.
The TA-25 benchmark stock index has declined by about 6 percent since the beginning of the year, led by Discount Investment Corp., a holding company with interests in telecommunications, retailing, and manufacturing.
To contact the reporter on this story: Alisa Odenheimer in Jerusalem at aodenheimer@bloomberg.net.
To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net.
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