Israel GDP Q3 2022

Economic growth slowed in the third quarter, with GDP expanding 2.1% seasonally adjusted annual (SAAR) (Q2: +7.3% SAAR).

Private consumption fell 1.7% in the third quarter, contrasting with the second quarter’s 9.3% expansion. Government consumption improved to record an expansion of 6.5% in the third quarter (Q2: +2.4% SAR). Meanwhile, fixed investment growth improved to 13.0% in the third quarter from the 7.3% increase recorded in the previous quarter.

On the external front, exports of goods and services increased 3.8% on a SAR basis in the third quarter, which is less than the 19.3% expansion in the second quarter. Conversely, the growth of imports of goods and services increased by 4.9% in the third quarter (Q2: +3.0% SAR).

On an annual basis, economic growth rebounded to 7.6% in the third quarter, compared to the previous quarter’s expansion of 5.1%.

A strong Q3 GDP reading suggests that annual GDP growth for 2022 as a whole will be close to 6%, which would be more than double our forecast for the major advanced economies. In the coming year, the agreement was for the economy to avoid recession, buoyed by rapid population growth, a potentially supportive fiscal stance, growing trade relations with Arab neighbors, and increased gas production.

Regarding the future, EIU said:

“With the prospect of a new government taking office very soon and a relatively comfortable fiscal provision, there is likely to be significant government injections to support the economy. […] We continue to expect further slowdowns in the fourth quarter of 2022 and early 2023, but we do not expect a recession, given the strong fundamentals and the range of supportive financial instruments.”

FocusEconomics analysts see the economy expanding 3.2% in 2023, down 0.2 percentage points from last month’s forecast, before growing 3.4% in 2024.

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