CBS : War would cut Israel’s GDP in 2006 by 0.7%

The CBS also noted that overall investment will go up despite the recent war. Israel’s GDP will grow this year by 4.5%, compared with 5.2% annualized growth in the first half of the year
 
The Central Bureau of Statistics (CBS) stated last week that the second Lebanon war would cut Israel’s GDP in 2006 by 0.7%, or NIS 5 billion. The CBS added that the war will affect Israeli economic growth, investment and the standard of living less than was originally thought.
 
CBS's chief national statistician, Soli Peleg, said that Israel’s GDP will grow this year by 4.5%, compared with 5.2% annualized growth in the first half of the year. Business product is believed to increase by 5.6%.
 
The CBS also noted that overall investment will go up despite the recent war. The CBS believes that investment in fixed assets will increase by 4.2% in 2006, investment in economic sectors will be up by 5.2%, and investment in residential construction will increase by 1.2%.
 
The CBS also noted that public consumption will rise this year by 4%: civilian public. consumption will increase by 2.5%, and defense consumption will increase by 7.5%.
On the standard of living issue the CBS noted that despite the war, the standard of living will increase this year by 2.8%, compared to 1.6% increase in 2005 and that private consumption is expected to rise 4.5%, and per capita growth by 2.6%.
 
On the question of exports the CBS expects total exports to rise this year by 4.4%, (exports excluding diamonds is expected to rise by 8.3%).
 
The CBS's export prediction per sector sees:
- 10.3% growth in overall exports of goods,
- 6.1% increase in exports of services and high-tech,
- 0.5% increase in agricultural exports,
- 0.4% increase in tourism.
- Diamond exports, however, are expected to fall by 14.3%.