An initial estimate published by the CBS on the effects of the corona shows that Israel has been less affected than other developed countries. "
Dizengoff Center in the shadow of the corona
Photo:
Coco - Archive
The corona has hit the economy hard, but to a lesser extent than most of the developed world, according to a preliminary estimate released by the Central Bureau of Statistics. According to the estimate, the Israeli economy contracted in the second quarter of the year (April-June) by 8.1% compared with the first quarter - on a quarterly basis.
This is the lowest figure in at least 40 years, which also officially put Israel in a recession, but better than most developed countries in the world - including the average in the European trade area (12.1%), in the US (9.5%) and even in Sweden where there was a historic drop of 8.6 % In GDP - although the restrictions on the economy in the country were very minimal. According to the CBS, Israel's situation is also better than that of Germany, Austria, Canada, the Netherlands and the United Kingdom. Only Lithuania and South Korea present better data than Israel.
Archive // Photo: GPO
In an annual calculation, based on the assumption that the restrictions imposed on the economy in the second quarter will continue throughout the year, a more dramatic figure of 28.7% was recorded. In the first half of the year, which was only partially affected by the corona crisis - since the impact is noticeable mainly from March - gross domestic product fell by 10.1% on an annual basis compared to the same period last year, after rising 3.4% in the last half of 2019. In terms of GDP levels, At the CBS, the contraction in the economy returns us to a level of GDP in seasonally adjusted real terms similar to that of the last quarter of 2016.
After deducting the product of housing services and the product of the public sector, GDP in the quarter decreased by 33.4% on an annualized basis and 9.7% in a quarterly calculation. The product of the public sector decreased at a rate similar to the whole economy. The business product decreased by 12% on an annual basis. The year 2019, and imports of goods and services fell by about 42% annually, 12.6% on a quarterly basis.
Private consumption expenditure, which was most significantly affected by the corona crisis, fell by 43.4% in the second quarter and by an annualized 13.3%. In the first half of 2020, private consumption fell by about 12% on a semi-annual basis. Private consumption per capita decreased by about 13.6% on a quarterly basis.
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"The contraction of the economy in the second quarter of 2020 was caused by the corona crisis and the government's measures to stop the spread of the virus," the CBS explains. "Among the measures: limiting the number of workers to ten or 30% of all workers except essential jobs, closing institutions" Education and all places of entertainment and leisure in April. During May they began providing relief and a partial return to routine subject to meeting the ‘purple character’ conditions. In addition, throughout the period, a policy of restricting the entry and exit of tourists from the country continued. "