The growth was due to higher exports and imports of goods and services
According to a second round of estimates released last week by the Central Bureau of Statistics (CBS) the Israeli economy grew by 2.9% - 3% on an annualized basis in the first quarter of 2012.
CBS said that GDP growth in the first quarter was due to higher exports and imports of goods and services, and higher private consumption, investment in fixed assets, and modest growth in public spending.
Exports of goods and services have grown by 3.4% and government consumption increased by 3.3%. A 7.3% increase was registered in fixed asset investment, which includes acquisition of equipment, establishment of new businesses and investment in real estate. The import of goods has experienced a growth of 6.7%, after seeing a drop of 4.5% in the previous quarter.
Business product growth fell to 2.8% in the first quarter, from 3.5% in the preceding quarter and 4.5% in the third quarter of 2011. The figure highlights the slowdown in the business sector, the economy’s growth engine
