The Israeli economy grew rapidly in 2000, as real gross
domestic product (GDP) grew by 5.9 percent, the Central
Bureau of Statistics (CBS) said Monday January 1 in its
preliminary estimates of the national accounts.
The high rate of growth, which was well above that of 1999
(2.3 percent) and 1998 (2.4 percent) was attributed mostly
to increases in industrial production and the business
sector. It should be noted that the figures include the
acquisitions of Israeli hi-tech companies by foreign
companies which added billions of dollars to the figures.
One company, Chromatis, was sold for close to $4 billion.
Industrial production (excluding diamonds), which was fueled
by an expansion in the hi-tech sector, grew by 10.3 percent,
compared to 1.2 percent in 1999 and 4.1 percent in 1998.
Production in the commerce and services sector increased by
around 11 percent in 2000, compared to about 8 percent in
1999. The increase was mostly due to significant growth in
the production of software services and activities from
start-up companies. The business sector grew by 7.7 percent,
well above the 2.0 percent and 2.6 percent registered in
1999 and 1998, respectively.
The construction sector continued to decline, albeit at a
slower rate than previous years. The sector contracted in
2000 by 4.3 percent, compared to a drop of 12 percent the
previous year and a drop of 8.2 percent in 1998.
The CBS said that the first three quarters of 2000 grew much
faster than the last quarter, when Arab violence began. The
first nine months saw 6.5 percent to 9 percent GDP annual
growth per quarter, whereas the fourth quarter was clearly
affected by the wave of unrest which began in October. The
construction and agricultural sectors were the hardest
hit.
Citing a study conducted a month ago, a CBS spokeswoman said
that the conflict cost the country about 0.5 percent of its
GDP in the past year.
GDP per capita increased to NIS 72,000 ($17,600), a 3.4
percent rise over last year. The increase is in line with
those in other industrialized nations. The OECD countries
had a 3.6 percent increase in GDP per capita.
For the month of October, which was already marred by
violence, industrial production nonetheless increased by 2.7
percent, the same rate as in September. In November, exports
rose by 9 percent, compared to 13 percent in October, while
imports increased by 15 percent, compared to 16 percent in
October. The current account deficit for November reached
NIS 378 million.
There was no inflation in 2000.
