GDP growth at 0.3%, consumer confidence down from last year - CBS

The GDP increased at an annual rate of 0.3% (0.1% quarterly) in Q2, the Central Bureau of Statistics (CBS) reported Tuesday, citing their third estimate for the second quarter of 2024. This shows slower growth than previously expected.

While exports fell, the economy was supported by gains in consumer and state spending and investment in fixed assets.

Public spending was up 5.3% annually (1.3% quarterly), consumer spending was up 11.8% annually (2.8% quarterly), and exports were down 7.1% annually (1.8% quarterly).

GDP growth

Israel’s central bank updated its macroeconomic forecast last week, predicting that GDP growth in 2024 will be 0.5% and 3.8% in 2025, or one and 0.4 percentage points lower than previous forecasts, respectively.

The Consumer Confidence Indicator stood at 26% in September, the CBS said earlier this week.

Although the index level has not changed significantly since last month, when looking at the same time last year – the index stood at 51%.

The index is measured on a scale from minus 100 to 100, and the higher the level of the index, the more optimism individuals have, while lower values indicate lower confidence.

It is made up of the answers to four questions, equally weighted, on the change in household finances of respondents in the last 12 months, the expected change in the household economic situation in the next 12 months, the expected change in the economic situation in the country in the next 12 months, and the individuals’ plan to make large purchases in the next 12 months when compared to the last 12 months.

Steven Scheer/Reuters contributed to this report.