Economy Grew At 6.6% in Q1 of 2006

According to a report published last week by the Central Bureau of Statistics (CBS), Israel's economy grew by an annualized 6.6% in the first quarter, well above forecasts and faster than the 5.2% growth in 2005 as a whole.
 
The CBS said that business product rose by an annualized 10.6% in the first quarter, after rising 6.6% in 2005.
 
Investment in fixed assets grew by an annualized 16.3%, including a 57% increase in investment in land vehicles and a 20% increase in investment in machinery and equipment. GDP per capita rose 5.1% in the first quarter, higher than forecast, compared with 3.3% growth in 2005 and 2.6% in 2004. Private consumption per capita rose by 8.7%, after rising moderately last year. Private consumption rose by an annualized 10.3% in the first quarter, including an annualized 14.6% increase in purchases of durable goods. The Central Bureau of Statistics said exports of goods and services rose by an annualized 2.4% in the first quarter, after falling 9.6% in the preceding quarter.
 
Income from tourism rose by annualized 41% in the first quarter, and industrial exports, excluding diamonds, rose by an annualized 9.2%. On the other hand, party because of exchange rate volatility, diamond exports fell by an annualized 35%, and agricultural exports fell by 36%. Imports of goods and services fell by an annualized 2.5% in the first quarter. Civilian imports fell by an annualized 5.2%.
 
Since the end of the latest Palestinian war against Israel in mid-2003, Israel’s economy has grown by 15%, and GDP per capita has grown by over 9%. In absolute figures, GPD reached an annualized NIS 540 billion in the first quarter, and private consumption totaled NIS 312 billion.
 
GDP per capita is approaching NIS 77,000, more than $17,000, and private spending per capita was NIS 44,000.