The gross domestic product of Israel expanded an annualized 3.1 percent in the three months to December of 2018, following an upwardly revised 2.4 percent advance in the previous period and above market expectations of 2.8 percent, preliminary estimates showed. Private consumption (4.9 percent from 3.3 percent) advanced faster and fixed capital formation (3 percent from -7.8 percent) rebounded. On the other hand, government expenditure (2.8 percent from 9.8 percent) increased at a softer pace. Meanwhile, net foreign demand contributed negatively to growth, as exports fell 3 percent (from 12.9 percent in Q3) and imports surged 7.3 percent (from -3.7 percent in Q3). On a quarterly basis, GDP advanced 0.7 percent, following a 0.6 percent gain in the previous quarter. Considering 2018, the economy grew 3.3 percent, higher than earlier estimates of 3.2 percent but below a 3.5 percent gain in 2017. GDP Growth Annualized in Israel averaged 3.85 percent from 1995 until 2018, 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 3.30 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.