Warning Signs From Q110 GDP Breakdown

Israel's Q110 GDP data release holds a number of warning signs regarding the sustainability of the country's economic recovery. Indeed, having been one of the first major economies to emerge from recession (in Q209), the subsequent 'bounce' in output looks like it is running out of steam. Real GDP growth slowed from 4.7% q-o-q annualised (seasonally adjusted) in Q409 to 3.3% in Q110. On the face of it, this headline figure is still impressive, but a further breakdown of the data reveals some worrying trends. While for now, we maintain our forecast for full-year real GDP growth to come in

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