CBS: Israel's Economy grew by 5.3% in 2007

GDP per capita rose in 2007 by 3.4% and reached an all-time high of NIS 91,000. The Bank of Israel expects the economy to grow by 3.3-4.4% in 2008
 
The Central Bureau of Statistics (CBS) reported last week that in 2007 economic growth totaled 5.3%, and business product grew by 6.1%.
 
The CBS noted that economic growth reached an annualized 6.1% in the second half of 2007, and 6.4% in the fourth quarter of the year. In a detailed report to summarize the 2007 economic performance, the CBS noted that GDP per capita rose in 2007 by 3.4% and reached an all-time high of NIS 91,000. The rate of growth in Israel in 2007 was higher than the OECD average of 2.7%.
 
The CBS also noted that the Israeli economy completed in 2007 five consecutive years of rapid growth with average growth rate of 5.3% per year. The Bank of Israel's State of the Economy composite index rose by 0.4% in February, indicating that Israel's economy continues to expand, but at a slower rate compared with 2007. Industrial production, export of services and the index of trade and services revenues were the main source of the increase.
 
A Bank of Israel official, speaking last week at a special press conference, said that the financial crisis in the US, affected economic growth in Israel which could have reached 5% level in 2008.The Bank of Israel expects the economy to grow by 3.3-4.4% in 2008.