Israel's Economy Up 3.3% in 2019, Report Says

Israel’s economy grew by 3.3% in 2019, according to data published Tuesday by Israel’s Central Bureau of Statistics (CBS). In comparison, the economy recorded growth of 3.4% in 2018 and 3.6% in 2017. Gross domestic product (GDP) per capita grew by 1.3% this year, down from 1.4% in 2018, reaching $43,600 per capita in prices current. In comparison, the average OECD GDP growth was 1.1%.

2019's GDP received a boost from a 3.9% increase in private consumption, compared to a 3.7% increase in 2018. Taking into account population growth, private consumption grew by 2% in 2019, compared to 1.7% in 2018 and 1.4% in 2017. Expenditure on household needs such as rent, water, gas, electricity, food, and services rose by 1.7%.

Public expenditure rose by 4.1% in 2019, after rising 4% in 2018, boosted by a 3.7% increase in defense expenses. Government deficit reached NIS 45.7 billion (approximately $13.23 billion) this year, up from NIS 38.1 billion (approximately $11 billion) in 2018. The current account deficit was 3.2% of GDP, compared to 2.9% in 2018.

Export of goods and services rose by 3.3%, after rising 5.6% in 2018. Barring the diamond and startup sectors, export of goods and services rose by 4.7% in 2019 after a 5.1% increase in 2018. Investment in fixed assets rose by only 0.3% in 2019, after an increase of 4.8% in 2018 and 4.3% in 2017. Investment in the various industry sectors dropped by 0.6%, after rising 8.3% in 2018 and 4.5% in 2017.

The GDP of the business sector in basic prices rose by 3.3% in 2019, compared to an increase of 3.6% in 2018 and 4.5% in 2017. Productivity increased in 2019—net product per hour worked in the business sector rose by 2.8% in 2019 compared to 2.5% in 2018. Real gross domestic income (GDI) rose by 4.5% in 2019, faster than GDP growth, thanks to better trading conditions.

Goods and services prices rose by 0.8% in 2019, after rising 1.7% in 2018 and dropping 0.5% in 2017. Local product prices rose by 2.4%, import prices of goods and services dropped by 4.6%, and export prices of goods and services rose by 0.3%.