Gross GDP decreased by 2.8% in the first three quarters of the year compared to the corresponding period in 2019 (seasonally adjusted). This is reported by the Central Bureau of Statistics, which updates its growth estimate for the third quarter of the year.
In the third quarter of 2020, when the exit from the first closure continued, GDP increased by 38.9% on an annualized basis (8.6% on a quarterly basis) compared to the second quarter in which the closure was imposed. During this period, private consumption expenditure increased by 42.3%. 2019, this is a decrease of 1.1% in GDP and 9.7% in private consumption.
The third quarter covered a large part of the impact – but GDP has not yet returned to its level at the end of 2019
GDP per capita rose in the third quarter by 36.6% on an annualized basis (8.1% on a quarterly basis) compared to the second quarter, and this is a three-year decline to the level of GDP per capita of the third quarter in 2019.
According to CBS data, on an annual basis and compared to the previous quarter, in the first quarter of this year, towards the end of which the corona hit Israel, GDP contracted by 7.0%, in the second quarter it continued to decline by 29.2% and in the third quarter grew by 38.9%.
So are we a light to the Gentiles or not?
A comparison with the OECD countries presenting the CBS shows that Israel is in a good position in terms of hitting GDP in the third quarter compared to growth in the corresponding quarter in 2019. Thus, while the OECD average stands at a negative growth of 3.9%, in Israel it is down 1.1% , Similar to South Korea.
In contrast, in the growth rate in the third quarter compared to the second quarter of the year, and in a quarterly calculation, Israel is below the OECD average. While the average stands for growth of 9.1%, in Israel the figure is 8.6%. However, it should be remembered that the more severe the injury in the various countries, the higher the recovery rate. In addition, the depth of damage following the corona has changed over the period and it is desirable to examine the change over a longer period – and also measure it in relation to the corresponding period last year.
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