Israel’s GDP Grows 4.5%

Israel’s GDP rose 4.5% in 2010, in fixed prices, according to preliminary estimates by the Central Bureau of Statistics. Israel’s GDP growth was almost double the expected OECD average of 2.7% for the year.Israel’s GDP rose by 0.8% in 2009, and rose by 4.2% in 2008. The 2010 growth figure is unexpectedly strong; economic organizations had predicted 4% growth.

Israel’s average unemployment rate of 6.7% in 2010 is well below the OECD average of 8.3%.

The Central Bureau of Statistics cited three noteworthy developments in 2010: the rapid growth of exports, which began in the second half of 2009, ended in the third quarter of 2010; the rapid growth in private consumption, which began at the same time, also slowed; and steady growth continued in investment in fixed assets, including housing starts.

Israel’s GDP per capita rose by 2.7% in 2010, after falling 1.1% in 2009, during the severe global economic crisis and the sharp slowdown in Israel’s economic growth. Israel’s performance in this variable was also above the OECD average of 2.3%.

Business product rose 5.3% in 2010 after rising by just 0.1% in 2009.

Investment in fixed assets, including in residential housing, stands out in particular, rising 10% in 2010, compared with the OECD average of 2.2%.