The Central Bureau of Statistics reported that Israel’s real economic growth slowed to an annualized rate of 2.1% in the first three months of 2014.
GDP grew by an annualized 2.9% in the fourth quarter of 2013 and 1.9% in the third quarter.
Business product, the growth engine of the economy, grew by just 0.4% - a level not seen since the 2009 recession.
Investment in fixed assets dropped by an annualized 14.4%. Moreover, GDP per capita is basically zero. Exports of goods and services grew at a healthy 6.3%, business output rose just 0.4%.
Spending on durable goods per capita, which reflects consumers' willingness to spend and consumer confidence, fell by 6% in the first quarter after falling by 8% in the preceding quarter. Purchases of refrigerators, air conditioners, and washing machines were down 40.2%.
