The gross domestic product in Israel expanded an annualized 5.2 percent in the first quarter of 2019, accelerating from an upwardly revised 3.9 percent advance in the previous three-month period and well above market expectations of 4 percent, a preliminary estimate showed. It was the highest growth rate since the June quarter of 2016. Government spending went up 1.2 percent, after showing no growth in the prior quarter and private expenditure increased faster (5.7 percent from 5 percent) while fixed capital formation slowed (10 percent from 14.2 percent). Meanwhile, net foreign demand contributed negatively to growth, as exports rose 6.2 percent (from -4.8 percent in Q4 2018) while imports advanced at a faster 6.7 percent (from 12.2 percent in Q4 2018). On a quarterly basis, the economy grew 1.3 percent, following a 1 percent expansion in the last quarter of 2018. GDP Growth Annualized in Israel averaged 3.87 percent from 1995 until 2019, reaching an all time high of 18.10 percent in the second quarter of 1999 and a record low of -4.10 percent in the first quarter of 2001.
GDP Growth Annualized in Israel is expected to be 3.80 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Growth Annualized in Israel to stand at 3.20 in 12 months time. In the long-term, the Israel GDP Growth Annualized is projected to trend around 3.60 percent in 2020, according to our econometric models.