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Israeli Economy Grows Faster Than Expected

Jonathan Schanzer

Israel’s gross domestic product grew faster than expected in the second quarter, Bloomberg news reports.

Booming chemical and fertilizer sales drove exports, and the economy expanded at a 4.2% annualized rate in April-June. That beat the median forecast of 4% from the 5 economists Bloomberg surveyed. Still, growth was the slowest since the 2006 war in Lebanon, easing from 5.6% in the first quarter.

“A 4.2 percent rate doesn’t really amount to a slowdown, it’s actually a good pace of growth,” Vered Dar, an economist at Psagot Investment House Ltd., said in an interview.

The most recent issue of inFOCUS Quarterly featured two pieces about Israel’s booming economy. Debbie Buchwald looks at Israel’s high-tech boom, and Paula Joffe ponders whether Israel has immunity from the current global market turmoil.