Israel’s Central Bureau of Statistics (CBS) said last Monday that Israel's economic growth accelerated to an annual rate of 2.2% in the third quarter, propelled by buoyant consumer spending and a sharp rise in exports. The statement issued by the CBS is the clearest signal yet that Israel has emerged from a recession. Israel's economic growth in the third quarter was broad-based, posting large gains in consumer spending (up an annual 8.9%), exports (up 21.8%) Imports soared 61.9% and investments in fixed assets (up 23.2%).



On the heels of the global economic and financial crisis, Israel had entered a recession in the fourth quarter of 2008 contracting by 1.6% in the last three months of 2008 and by 3.2% in the first quarter of 2009. But helped by state spending and gains in exports, some 45% of economic growth, and consumer spending, the economy eked out growth in the second quarter.



The Bank of Israel forecasts zero growth for all of 2009 and growth of 2.5% next year. The Consumer Price Index for October rose by 0.2%. Since the beginning of the year the CPI has climbed by 3.6%, and in the past 12 months it has risen by 2.9%. The October index was pushed upward by a rise in the cost of shoes and clothing (4.1%), household water (3.7%) and housing. Downward pressure came from declines in the cost of fresh fruits and vegetables (2%) and gasoline, which dropped by 0.7%.