Israel's economy continues to be among the strongest in the OECD.
Israel grew by 6.5% in 2022 compared to 2021, the Central Bureau of Statistics announced today (Thursday).
This is a figure that bypasses the Bank of Israel's forecast of 6.3%.
The encouraging figure places Israel at the top of the developed countries in terms of the growth rate for last year.
Thus, among the OECD countries that have already published their GDP data for 2022, only Ireland and Greece overtake Israel, with growth rates of 10.1% and 6.7% respectively, when the average figure for the OECD countries was only 2.8%.
Another impressive figure published today shows that in the fourth quarter of 2022 the gross domestic product grew by 5.8% on an annual basis, this compared to the average forecast of 2.5%.
The growth of 6.5% in 2022 is followed by an increase of 8.6% in 2021, after a decrease of 1.9% in 2020 following the Corona crisis.
The population in Israel increased in 2021 by 2%, so that the gross domestic product per capita increased by 4.4% after an increase of 6.8% in 2021. The GDP per capita in 2022 amounted to NIS 184.3 thousand.
For comparison, according to OECD forecasts, GDP per capita in the countries of the organization increased by an average of 2.6% this year. Israel is also at the top of the developed countries in this figure: with only Ireland placed ahead of it with an 8.9% increase in gross domestic product per capita in 2022.
The 6.5% increase in Israel's GDP for 2022 was affected by changes in the following components: an increase in private consumption (3.7%), a minor increase in public consumption (0.1%), an increase in gross investment (3.2%) and an increase in exports (2.3%) against the decrease in imports ( 2.9%).
According to the CBS data, spending on private consumption increased by 7.5% in 2022 following an increase of 11.1% in 2021. Private consumption per capita increased by 5.5% in 2022. for fuel and electricity for household maintenance, and for industrial products for regular consumption.
Spending on semi-sustainable products per capita (spending on clothing and footwear, home textiles, small electrical work and household tools, entertainment and leisure products, and personal items) remained stable in 2022 (increased by 0.2%) when spending on clothing and footwear increased by 4.9% .
Expenditure on sustainable products per capita increased by 6.7% and included an increase in expenditures for the purchase of vehicles for private use of 23.1%.
The investment in fixed assets (the investment in residential houses and the investments of the economic sectors in construction, in equipment and means of transportation) increased in 2022 by 9.3%, following the increase of 11.7% in 2021.
Investments in residential construction increased by 16.6%.
Investments in non-residential construction and other construction work rose 9.9%.
The export of goods and services increased this year by 7.9%, following the increase of 14.6% in 2021, when the export of diamonds decreased by 17.6% and the export of start-up companies increased by 8.2%.
It was also reported that in 2022 the current account balance of the government sector amounted to a surplus of 7.8 billion NIS compared to a deficit of 54.2 billion NIS in 2021. In terms of GDP, the surplus in the current account in 2022 amounted to 0.4% of GDP, compared to a deficit of 3.4 % in 2021 and a deficit of 9.0% in 2020. The transition from a deficit to a current surplus of the government sector in 2022 is due to the reduction of the extraordinary expenses that the government had in 2021 following the corona crisis. At the same time, the transition from a deficit to a current surplus this year is also affected by the increase in revenues.
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