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Israels economy is now growing at over 6.6%


Zeev Klein 31 May 06 14:49

Israels economy is now growing at over 6.6%, its growth rate during the first quarter, according to collated economic indicators for February-April 2006, published by the Central Bureau of Statistics today. The data indicate that industrial output rose by an annualized 7.4% in February-April, imports of raw materials increased by an annualized 8.7%, and the export of goods rose by an annualized 8.8%.

Tourist hotel overnights rose by an annualized 58% in February-April. Trade and service proceeds rose by 2.4%, and labor inputs rose by an annualized 8.9%. Only one indicator, import of investment goods, fell by an annualized 9.6% in February-April.

The unemployment rate is continuing to drop. The unemployment rate fell to 8.7% in the first quarter from 8.8% in the fourth quarter of 2005, 8.9% in the third quarter and 9.1% in the second quarter.

The Central Bureau of Statistics also reported today that inflation reached 3.1% in the first quarter, above the governments 1-3% inflation target, up from 2.8% in the preceding months. The CPI, excluding housing, rose by an annualized 3% in February-April, after rising 2.7% in November 2005-January 2006. Basic inflation, the CPI excluding housing and fruits and vegetable, rose by 3% in February-April, after rising 2.7% in the preceding three months.

Published by Globes [online], Israel business news — — on May 31, 2006