The Central Bureau of Statistics (CBS) estimated Israel's economic growth in 2014 to be 2.6% , its slowest pace in five years, but economic growth is expected to pick up pace next year.
The estimated growth rate is significantly upward adjustment of its 2.2% forecast in November.
The cause is a faster than expected recovery in various economic sectors, following the July-August conflict with Palestinian militants in Gaza - Operation Protective Edge.
At the same time, the figures show stagnation in exports and investments. Growth, however, beat that of most other Western countries, with the OECD average at 1.8%. Israel's economy produced a record 1.1 trillion shekels (US$283 billion) in 2014.
The CBS noted that private consumption was up 3.8% in 2014, versus 2013's 3.3 per cent, and 1.8% in per capita terms. Consumption of durable goods up 7%, due mostly to a rise in vehicle purchases, while consumption of non-durable goods rose only 1.4%. Overseas spending by Israelis jumped 6.1%. Israel's exports of goods and services -- which account for some 40 per cent of activity - were up only 0.6% in 2014, reaching US$44 billion, 21% of which was to the US. Israel's main sources of imports were the US and China.
Imports of goods and services rose 0.9%: imports of goods fell, while imports of services increased.The increase in industrial output, which accounted for 21% of business product, was a negligible 0.4%, while output in financial and technical services was up 5.8%. Investments in fixed assets decreased in 2014.
