GDP increased in the third quarter by 2.4% on an annualized basis up from 0.6% at Q2

Gross domestic product (GDP), at constant prices and after deducting the seasonal effect, increased in the third quarter by 2.4% on an annualized basis compared with the second quarter (0.6% on a quarterly basis). Compared with the third quarter of 2020, it increased by 5.9%, according to the Central Bureau. According to statistics, the gross domestic product per capita increased by 0.5% on an annual basis.
The Central Bureau of Statistics explains that the relatively moderate increase was also due to a decrease in passenger car imports compared to the second quarter (partly due to the slowdown in production at car brands in the shadow of the chip crisis and other delays). With the decline in imports, taxation on it also fell - which hurt growth. Neutralizing this effect, GDP excluding net taxes on imports increased by 3.5% on an annualized basis.
Imports of civilian goods rose by 24.6% on an annualized basis in the third quarter. There was also a 11.8% decrease in imports of services, excluding tourism services, which increased by 30.7% on an annual basis. Excluding the neutralization, imports of services decreased at a lower level of 8.2% on an annual basis. Imports of diamonds and defense imports also increased in the quarter, and thus the entire item of imports of services and goods increased by 2.7% on an annual basis.
The decline in vehicle imports led to an increase in private consumption expenditure (from the growth engines of the Israeli economy) at a low rate of 0.7%, and private consumption per capita fell by 1.1%. However, in the shadow of rising prices in the economy, current private consumption per capita (expenditure on food, beverages and tobacco, personal services, housing, fuel and electricity for housekeeping, and industrial products for current consumption) increased by 6.8% from the second quarter and on an annualized basis. Within the expenditure section for semi-durable products per capita on a decrease of 9.2% in the clothing and footwear section on an annual basis.
Public consumption expenditure decreased by 2.3% and civic consumption expenditure increased by 0.9% on an annualized basis, while net civilian purchases decreased by 1.9% on an annualized basis.
In the investment in fixed assets section, it was reported, among other things, that investment in machinery and other equipment (excluding ICT equipment - equipment in the information and communication technology industries) decreased by 16.4% on an annualized basis, and investments in ICT industries increased by 20.7% on an annualized basis (4.8% on a quarterly basis). ). And against the background of the strong shekel, exports of services that do not include tourism and start-ups fell by 5.9% on an annual basis. Total exports of goods from manufacturing industries excluding diamonds decreased by 5.3% on an annualized basis.