The Israeli economy grows 3.4% on an annual basis, according to the initial estimate of the central Bureau of Statistics. GDP per capita grows by 2.2% year-on-year-old, a stimulating number after reduced by 2024.
However, despite a relatively positive growth, private consumption falls for 5% year-year. Each captain’s private consumption falls in a greater higher rate, with reduced 6.1% year-on-year. Reduced private consumption at the beginning of 2025 marks a change of trend from last year, after a 4.1% rise in the fourth quarter of 2024.
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A fall in private consumption will always see a hint of reducing consumer trust and adding concerns about future economy. In case of the first quarter of 2025, about reducing due to purchases taken by the previous quarter, due to tax changes used at the beginning of the year.
The maximum decline is to spend lasting products per capita, cut by 66.5%, year-year. The main reason for this is a slow to buy cars, after sharp jump recorded in the fourth quarter of 2024, due to the advancement of the buyer due to the start of 2025.
At the same time, spending semi-durable items per capita (clothes, clothing, fabric, entertainment and entertainment, the current consumption of each capita (food, gasoline and electricity) records a slight increase in 4.1%.
The business sector leads to growth
The GDP of the business sector grew up in the first quarter by 4.4% from the corresponding quarter of 2024, a number indicating a private sector, after reduced by 0.7% of 2024.
On the other hand, the state’s public expenditure records a small fall of 0.2% on an annual basis, after a quartering year 2024. After fourth of the quarter of 2025.
Published in Globes, Israel News in News – en.globes.co.il – On May 18, 2025.
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