optimistic note for 2019: The Israeli economy grew by 3.3% slightly higher than forecast

The Israeli economy grew by 3.3% in 2019, a slightly higher rate than forecast - the Central Bureau of Statistics published on Tuesday. According to a preliminary estimate for 2019, gross domestic product increased by 3.3% during the year compared to 2018, followed by a 3.4% increase in GDP in 2018 and a 3.6% increase in 2017.
The CBS figures also indicate that the government and Social Security deficit stood at 3.54% of GDP in 2019, which is about NIS 50 billion. For example, last year the government deficit reached 3.19% according to the CBS, compared to 2.9% according to the Treasury data. 2019 to 4%, which is about NIS 55 billion, compared with 3.6% in 2018.
The composition of growth in 2019 was similar to that of 2018 in most parameters, with the exception of a worrying decline in fixed asset investments: these investments recorded a minimal increase of 0.3% in 2019, compared with a 4.8% increase in 2018. Behind the figure is a large decline in the purchase of machinery and equipment, a figure that may indicate a slowdown in economic activity in the manufacturing sector.
Exports of goods and services rose by 3.3% this year, following a 5.6% increase in 2018 and a 4.1% rise in 2017. Revenues from tourism services exports rose by 3.3%, following a 5.3% increase in 2018. Exports of services, excluding tourism and start-ups, which mainly include software and research services, rose by 9.2%, following a 9.9% increase in 2018. Diamond exports fell by 25.1% and agricultural exports by 2%. Imports of goods and services, at constant prices, rose 3.4% this year, following 6.4% increases in 2018 and 4.9% in 2017.
Israel's trade data and capital flows indicate an increase in surplus, which supports the continued appreciation of the shekel against foreign currencies. Israel's trade balance is in surplus of $ 9.8 billion, compared with a surplus of $ 4 billion in 2018. The current account of the balance of payments totaled $ 14.8 billion in 2019, after a surplus of $ 9.5 billion the previous year. The current account surplus in 2019 constituted about 3.7% of GDP, followed by the surplus in 2018 which accounted for 2.6% of GDP.