Investment Weighing On Growth

According to the Central Bureau of Statistics' first estimates, real GDP growth in Israel accelerated to 4.3% q-o-q annualised (seasonally adjusted) in Q409, up from 3.0% and 1.2% in Q309 and Q209 respectively. This brought full-year growth to 0.5% in 2009, slightly above our -0.1% estimate, which is an impressive outturn against the backdrop of the global recession. Despite this positive headline figure, we strike a note of caution: real gross fixed capital formation (GFCF) declined sharply (-9.7% q-o-q annualised) in Q409, and real private consumption growth slowed to 4.4% q-o-q annualised, from 5.1% and 9.5% in Q309 and Q209

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