The Israeli economic system grew 3.4%, on an annualized foundation, within the first quarter of 2025, in line with the preliminary estimate of the Central Bureau of Statistics. GDP per capita rose by 2.2%, on an annualized foundation, an encouraging determine after the declines in 2024.
Nonetheless, regardless of the comparatively constructive development, personal consumption fell by 5%, on an annualized foundation. Non-public consumption per capita fell by a fair higher fee, with a lower of 6.1%, on an annualized foundation. The decline in personal consumption initially of 2025 marks a reversal of pattern from final 12 months, after a 4.1% rise within the fourth quarter of 2024.
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A fall in personal consumption is usually seen an indicator of declining shopper confidence and growing considerations in regards to the financial future. Within the case of the primary quarter of 2025, a part of the decline is because of purchases being introduced ahead to the earlier quarter, as a consequence of tax modifications that took impact initially of the 12 months.
Essentially the most dramatic decline was in spending on sustainable merchandise per capita, which was minimize by 66.5%, on an annualized foundation. The primary issue behind this was a slowdown within the buy of automobiles, after the sharp bounce recorded within the fourth quarter of 2024, as a result of advance of purchases as a consequence of tax modifications that got here into impact at first of 2025.
On the similar time, spending on semi-durable items per capita (clothes, footwear, residence textiles, leisure and leisure merchandise) fell by 21.4% 12 months, on an annualized foundation. Nonetheless, present consumption per capita (meals, drinks, private companies, housing, gas and electrical energy) really recorded a slight improve of 4.1%.
Enterprise sector leads development
The GDP of the enterprise sector grew within the first quarter by 4.4% from the corresponding quarter of 2024, a determine that signifies a sure restoration of the personal sector, after a lower of 0.7% in 2024.
Alternatively, the state public consumption spending recorded a slight fall of 0.2% on an annualized foundation – a change in pattern, after the bounce of 8.8%, on an annualized foundation, recorded within the fourth quarter of 2024. Protection spending fell 15.6% within the first quarter of 2025 on an annualized foundation, after a bounce of 49.2% on an annualized foundation within the earlier quarter.
Printed by Globes, Israel enterprise information – en.globes.co.il – on Might 18, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
