Second quarter growth exceeded expectations, coming on the heels of a disappointing first quarter that recorded only a 3.3% rise in GDP.
The rise in second quarter GDP was attributed to increasing exports of goods and services (13.2%), investments in fixes assets (7.8%), personal consumption (5.3%), and public sector expenses, excluding military imports (5%).
The standard of living in Israel also rose by 3.7% in the second quarter the year.
Overall personal consumption in the first half of 2005 jumped by 4.1%.
The positive economic figures, released by the Central Bureau of Statistics, have been attributed to the economic policies of former finance minister Binyamin Netanyahu. Netanyahu’s policies, however, have been criticized for being too harsh on the nation’s poor and unemployed.
Netanyahu resigned his post on August 7, in opposition to the implementation of the disengagement plan.
Not all the recent economic news was as bright as the GDP figures. Inflation for the month of July rose by a steep 1.1%, surprising many economic analysts. On an annual basis, inflation for the April-July period reached 3.5%, 0.5% higher than the upper limit of the government’s inflation target. The annualized inflation rate for the January-July period was only 2%, however.
Contributing to July’s inflation rate were a depreciation in the value of the shekel (0.5%) and higher prices for fuel, taxi fares, hotels, books, car rentals, and recreation.
The rise in second quarter GDP was attributed to increasing exports of goods and services (13.2%), investments in fixes assets (7.8%), personal consumption (5.3%), and public sector expenses, excluding military imports (5%).
The standard of living in Israel also rose by 3.7% in the second quarter the year.
Overall personal consumption in the first half of 2005 jumped by 4.1%.
The positive economic figures, released by the Central Bureau of Statistics, have been attributed to the economic policies of former finance minister Binyamin Netanyahu. Netanyahu’s policies, however, have been criticized for being too harsh on the nation’s poor and unemployed.
Netanyahu resigned his post on August 7, in opposition to the implementation of the disengagement plan.
Not all the recent economic news was as bright as the GDP figures. Inflation for the month of July rose by a steep 1.1%, surprising many economic analysts. On an annual basis, inflation for the April-July period reached 3.5%, 0.5% higher than the upper limit of the government’s inflation target. The annualized inflation rate for the January-July period was only 2%, however.
Contributing to July’s inflation rate were a depreciation in the value of the shekel (0.5%) and higher prices for fuel, taxi fares, hotels, books, car rentals, and recreation.