Israel’s GDP grew by a whopping 15.4% in the second quarter, compared with the previous quarter, the Central Bureau of Statistics said Monday.
The sharp rise was attributed to the removal of most coronavirus restrictions during the quarter and a return to near-normal economic activity. The first three months of 2021 were characterized by a national closure and severe economic restrictions.
A significant increase in car sales during the second quarter also drove GDP growth, CBS said. GDP grew 12.4% when import taxes are excluded.
Business GDP grew by 19.8% during the quarter. Private consumption grew 36.3%, or 23.3% excluding durable goods.
Compared to the same period a year ago, GDP for the second quarter grew by 15%, CBS noted. All figures are calculated on an annualized basis, seasonally adjusted.
Business leaders and economists have warned that declaring another national lockdown in September would put a large speed bump in Israel’s impressive economic recovery.
Meanwhile, Israel’s consumer Price Index (CPI) rose 0.4% in July, a tad more than expected, CBS said Sunday. The measure of inflation has risen by 2% since the beginning of 2021, and 1.9% over the past 12 months.
Housing prices rose by 0.6% during May and June, CBS noted separately. That extended a rally that has seen home prices rise 7.7% in the last 12 months.
Prices have risen by 11.6% in the North over the past year, compared to smaller gains in Jerusalem (7.2%) and Tel Aviv (7.1%).