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Israel’s Economy 1st in Job Creation & Growth in West

October 17, 2012

Although economic activity has slowed in 2012, Israel poised to end year with 3.5% growth, higher than most Western economies, two times OECD average • Eurozone, global financial crisis have resulted in lower standard of living in Israel.

For all the bad economic news from the past year, Israel’s economy has so far outperformed most Western economies in 2012, claimed the Central Bureau of Statistics in a new report Tuesday.

Israel’s economy, which is expected to grow by 3.5 percent, has also fared better than other member states in the Organization for Economic Cooperation and Development, whose average rate of growth will likely stand at only half that of the Jewish State, at 1.6 percent. Israel has only recently joined the OECD, which comprises the world’s leading industrialized nations.

The eurozone’s troubled economy is expected to contract by as much as 0.2% in 2012. At least seven European economies are expected to end 2012 with negative growth. The U.K.’s economy, which is not part of the eurozone, will likely contract by 0.3% but Greece’s will contract by as much as 3.2%, analysts predict. France will experience 0.1% growth, while Germany’s economy will likely expand by 0.9%. The U.S. and Japan are both likely to see 2.2% growth.

Over the past two years Israel has had the most rapid growth rate in the Western world. Creation of new jobs in Israel has also outpaced Western economies.

However, the Israeli economy has experienced a slowdown due to the ongoing global financial crisis and the potential breakup of the eurozone, claimed the CBS in its report.

According to the government agency, which tracks economic indicators and publishes periodical reports, Israel’s economy is likely to grow by only 3.5% in 2012. In 2011 and 2010 Israel’s economy grew by 4.6% and 5% respectively.

The bureau also expects Israelis’ standard of living and GDP growth per capita to improve by only 0.9% (a combined figure) in 2012, a more moderate pace compared to the past two years.

Among the statistics that could shed light on the declining standards of living is the sales of cars and electronic household appliances (including refrigerators, televisions, air conditioning units, washing machines, dryers and dishwashers). According to the agency, this figure has dropped by 7.3% per capita in 2012. GDP growth per capita is likely to reach only 1.7% in 2012.

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