Israel’s economic recovery: GDP grew 2.4% in the third quarter

Israel’s gross domestic product rose 2.4% in the third quarter of the year, the Central Bureau of Statistics said on Tuesday.

Private consumption increased 0.7% compared to the previous quarter. Exports were up 7.5%, while imports were up 2.7%, CBS said.

The new numbers continue to show that Israel’s economy is recovering strongly from the corona pandemic.

On Monday, the Finance Ministry said Israel’s economy is on track to show growth of 7.1% by 2021, and then another 4.7% in 2022, as private consumption and tax revenues continue to rise. The ministry had previously forecast 5.1% growth this year.

On Tuesday, the international credit rating company S&P affirmed its sovereign credit rating for Israel at AA- with a stable outlook. The rating was based on Israel’s robust and diversified economy, strong external accounts, and optimal debt structure, despite increasing geopolitical risks. He said the country’s strong high-tech sector and natural gas production, as well as its efficient vaccination program, bode well for economic growth.

Illustrative photo of Israeli money (credit: MARC ISRAEL SELLEM)

The formation of a government after two years of political instability, the approval of the state budget and the multitude of reforms established in the Economic Arrangements Law are also positive developments, S&P said.

Last week, Fitch Ratings affirmed Israel’s sovereign rating at ‘A +’ with a stable outlook. Moody’s rates Israel as stable A1.

Israel’s CPI rose just 0.1% in October, CBS said on Monday, bringing inflation to 2.6% since the beginning of the year, or 2.3% in the past 12 months.

The strong shekel, trading at NIS 3.09 per dollar on Tuesday, is helping to prevent price levels from rising further.

House prices rose 0.7% during August-September, CBS said in a separate report released Monday. Over the past 12 months, average home prices in Israel increased by 9.9%.

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