Economy grew 3 percent in 2017

As forecast, the economic results for 2017 were good, but not as good as in 2016, the Central Bureau of Statistics reported on Sunday. There was a decline in almost every sector.

The budget deficit reached its lowest point in recent years as a result of tax-revenue surpluses and campaigns by the Israel Tax Authority.

GDP grew 3.0% in 2017, following rises of 4.0% in 2016 and 2.6% in 2015. Seasonally adjusted figures for GDP by quarters show that GDP was up 3.5% in the third quarter (4.1% in the previous estimate), after rising 2.6% in the second quarter and 0.9% in the first quarter.

Israel’s population grew 1.9% in 2017, meaning that per capita GDP was up 1.0% in 2017, following a 1.9% rise in 2016. Per capita GDP totaled NIS 144,500 ($40,100) in 2017.

For the sake of comparison, OECD figures show that per capita GDP rose 1.9% in its member countries.

Private consumer spending rose 3.0% in 2017, or 1.1% per capita, following a 6.1% increase in 2016. Per capita spending on durable goods dropped 10.9%, and per capita spending on semi-durable goods (clothing, footwear, etc.) grew 4.7%. Per capita spending on current consumption (food, housing, fuel, services, etc.) was up 2.2%.

The current-account deficit in the government sector totaled NIS 8 billion in 2017, or 1.1% of GDP, compared with NIS 15.6b. in 2016, or 1.8% of GDP, with a 2.9% budget-deficit target. (Globes/TNS)