The Central Bureau of Statistics updates downwards the growth data published for the first quarter of the year.
According to the update, there was a decrease of 1.9% in the growth rate of the economy compared to the previous quarter, and not of 1.6% as published in May - most of the change is due to the update of the private consumption figure.
However, compared to the first quarter of last year, this is still a nice positive growth of 8.9%.
According to the CBS, this is a "sharp increase that still reflects the recovery from the corona crisis, such an increase in the period before the corona crisis has not been in the last twenty years."
The CBS announcement states that the negative development in the first quarter of 2022 came after the sharp and unusual increase in the last quarter of 2021, which stood at about 15.6%. C is explained in part by the omicron wave in January-February.
Will the US recession affect Israel?
Many economists are warning these days about the US economy entering a recession (a situation in which there has been negative growth for at least two quarters), many of whom are convinced that the US recession will also lead to a recession in Israel. To 1.50-1.75%, instead of 50 basis points, reinforces these concerns.
At the same time, it should be noted that the situation in Israel is different, inflation in the US is double that of Israel and there are also some factors that support growth unique to Israel, so most estimates about Israel meanwhile slow down economic activity without entering a recession. They are the highest growth rate of the population - about 2%, diversified exports and less sensitive to growth abroad, such as defense exports and pharmaceuticals.
In addition, a real wage increase is expected which will support private consumption, as well as an increase in investments in infrastructure and residential construction.
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