Israel's economy to recover strongly in the first quarter of 2024

NDO - The resumption of business purchases and investment in the construction sector in the first three months of 2024 has led to a strong recovery of the Israeli economy, after growth was affected late last year when the conflict broke out in the Gaza Strip.

Israel's Central Bureau of Statistics said on May 16 that the country's gross domestic product (GDP) is estimated to grow 14.1% in the first quarter of 2024 compared to the previous three months, thanks to strong growth in the procurement and construction sectors.

The conflict between Hamas and Israel in Gaza that broke out on October 7 last year had a negative impact on Israel's economic growth, resulting in a 21.7% drop in fourth-quarter GDP.

However, a large increase in private spending and investment, which both fell in the fourth quarter of 2023, became the main driver of economic recovery in the January-March period this year.

However, the Israeli Central Bureau of Statistics also said that personal consumption data and investment in fixed assets remained affected by the security situation and had not returned to pre-conflict levels.

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Earlier, data released on May 15 showed that Israel's inflation rate rose from 2.7% in March 2024 to 2.8% in April. While inflation remained within the government 's target of 1-3%, the rate was higher than the expected 2.5%, and together with the economic recovery, this index could cause the Bank of Israel to delay cutting interest rates.

The bank forecasts Israel’s economic growth in 2024 at around 2%, assuming the conflict is contained and ends this year without spilling over to other fronts. The next interest rate adjustment will be decided on May 27.

Personal spending, which accounts for more than half of Israel's economic activity, rose 26.3% in the first quarter of this year after a corresponding decline in the fourth quarter of last year, hit by gloomy sentiment due to the conflict and people refraining from buying other than essentials.

Fixed asset investment rose 49.2% in the first quarter, led by the construction sector with a 290% increase, after falling 69% in the last three months of 2023.

Exports remained weak, falling 11%, while imports rose about 33% and government spending rose 7.1%.

Source: https://nhandan.vn/kinh-te-israel-phuc-hoi-manh-trong-quy-i2014-post809729.html