Israel’s economy surges 3.8% in Q3 ’24

Israel’s economy grew at an annualised 3.8 per cent in the third quarter of 2024, exceeding the 2.9 per cent forecast, data by its Central Bureau of Statistics showed on Sunday.  This was despite the ongoing Israeli war on Gaza and Lebanon.

The rebound was driven by an 8.6 per cent surge in consumer spending, a 21.8 per cent rise in investment in fixed assets, and a 1.7 per cent increase in exports. Business sector GDP expanded by 5.4 per cent, countering a 10.8 per cent drop in government spending.

Inflation remained at 3.5 per cent in September, above the government’s 1-3 per cent target, with the Bank of Israel set to review interest rates on 25 November. The central bank is not expected to cut rates due to persistent inflationary pressures and geopolitical tensions.

Attribution: Reuters

Subediting: Y.Yasser