arrow up biz 88.
(photo credit: )
X
Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before.
Nevertheless, traditional business models are no longer sustainable and high-quality publications,
like ours, are being forced to look for new ways to keep going. Unlike many other news organizations,
we have not put up a paywall. We want to keep our journalism open
and accessible and be able to keep providing you with news
and analysis from the frontlines of Israel, the Middle East and the Jewish World.
As one of our loyal readers, we ask you to be our partner.
For $5 a month you will receive access to the following:
- A user experience almost completely free of ads
- Access to our Premium Section
- Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
- A brand new ePaper featuring the daily newspaper as it appears in print in Israel
Help us grow and continue telling Israel’s story to the world.
Thank you,
Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief
UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH
Show me later
Israel's gross domestic product grew 4.5 percent in annual terms in the third quarter of 2005, as the business-sector product jumped 7.4%, the Central Bureau of Statistics said Wednesday.
"This is very positive, showing that it is the business sector that is expanding, and that the policy of cuts in public-sector spending has contributed much to business-sector growth," said Rafi Melnick, dean of the Lauder School of Government at the Interdisciplinary Center in Herzliya and formerly of the Bank of Israel.
Growth in the business-sector product - which constitutes roughly 70% of the overall GDP - reflected increased production in the industrial sector and most service sectors, particularly financial, business, and personal services. Business-sector product grew 7.7% in the second quarter and 3.6% in the first, the CBS said.
The latest growth figure follows 6.4% annualized GDP growth in the second quarter and 3.5% in the first quarter. The CBS has forecast that the GDP will have grown 5.1% in total this year, while the Bank of Israel and the Finance Ministry most recently predicted 4.5%.
Quarterly GDP growth figures include a large estimated component which the CBS generally treats cautiously. As such, quarterly figures tend to be lower than the eventual yearly growth figure, Melnick commented.
The GDP rose 4.3% last year, but only 1.3% in 2003 after sinking 0.7% and 0.9% in 2002 and 2001 respectively.
Per capita consumer spending remained stable in the third quarter, following an annualized 1.8% growth in the second quarter and a 1.6% drop in the first.
Non-diamond exports rose 4% in the third quarter, following 5.6% growth in the second and 2.6% in the first. Agricultural exports fell fully 44.7%, while exports of tourism services dropped 5.2%.
Investments in fixed assets (building, machinery and equipment, and transportation vehicles) rose 8.1% in annual terms, having grown 6.7% in the second quarter after dropping 11.9% in the first.
Widespread expectation that Bank of Israel Governor Stanley Fischer will raise the shekel interest rate for December by at least one quarter of a percentage point has been reinforced by October's 0.8% inflation figure as well as the positive third-quarter GDP growth figure.
"If the market is growing at a good rate, Fischer will be less worried about raising the interest rate as a tool to prevent the rises in the dollar, oil and commodities from causing inflation," Melnick said.
"Macro-economic statistics in Israel are very positive. It's no wonder that Dan Quayle is buying the country's number-two bank."
Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>