CBS: Israel’s economy grew 4.5% in 2010

The economy grew higher than the 4% growht which was predicted and way above the OECD average of 2.3%
 
Israel's Central Bureau of Statistics (CBS) said last Thursday that according to preliminary estimates the country's economy grew by 4.5% in 2010, in fixed prices,  higher than the 2.7% average in the Organization for Economic Cooperation and Development.
 
The 2010 growth figure is unexpectedly strong; economic organizations had predicted 4% growth. The CBS noted that Israel's imports and exports showed double-digit growth, and unemployment stands at 6.7%, well below the OECD average of 8.3%.  
 
The International Monetary Fund gave Israel high marks last month, while warning that skyrocketing housing prices and extensive ties to overseas markets could make it vulnerable. 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%. As for the new year, Bank Hapoalim, Israel's largest bank, said in a press release that Israel's GDP growth in 2011 will be at 3.5%, less than the 4.5% growth recorded in 2010.
 
The bank noted that "Although this growth rate is less than the economy's potential, it is still impressive compared with most developed countries, and taking into account the fact that Europe, Israel's largest trading partner, is in the throes of a crisis." Bank Hapoalim predicts that global GDP growth will slow to 4.2% in 2011 from 4.9% in 2010. The CBS noted three noteworthy economic developments in 2010:
 
The rapid growth of exports, which began in the second half of 2009 and ended during the third quarter of 2010; The rapid growth in private consumption, which began in the second half of 2009, also slowed during the third quarter of 2010; and Steady growth in investment in fixed assets, including housing starts.