Subscribe to Print Edition | Thu., November 27, 2008 Cheshvan 29, 5769 | | Israel Time: 01:35 (EST+7)   Back to Homepage web haaretz.com Haaretz Toolbar Diplomacy Defense Jewish World Opinion National Print Edition Car Rental Books Haaretz Magazine Business Real Estate GA 2008 Travel Week's End Anglo File

Slowing down: Economy grows by only 2.3% in third quarter By Moti Bassok The Israeli economy is definitely slowing down. Economic growth between July and September reached only 2.3% in annual terms - far below the 4.1% reported for the second quarter and 5.2% for the first, and for all of 2007 for that matter. Growth in the quarter, however, was quite a bit higher than that expected in the near future, when the economy is expected to really start feeling the impact of the world financial and economic crisis. Private sector production rose just 1.9% in the third quarter after gaining 5.0% and 5.8% in the first and second quarters respectively. Advertisement The preliminary estimates for the period released by the Central Bureau of Statistics yesterday point to a slowing or even shrinking economy in most areas. Investment was down 16.5%, and exports of goods and services shrank 13.4%. (These had fallen 2.1% in the second quarter after gaining 13.2% in the first.) Imports are declining as well. Services and goods from overseas sank 7.0%, and private spending on consumption shrank 2.9%. The figures show that manufacturing exports sank as well in the quarter, down 9.9%. Although diamond exports were down a whopping 57.5% and tourism services plunged 45.4%, agricultural exports gained 35.9% in the three-month period. Gross domestic capital formation was down 0.8%, after easing 0.9% in the second quarter and increasing 7.4% in the first quarter. Investments in fixed assets such as buildings, machinery and equipment, and vehicles, tumbled 15%. Bookmark to del.icio.us   Who's missing? Haredi parties absent from Jerusalem coalition for first time in decades. 'Kavosh 2' Amid nuclear tensions, Iran says it successfully launched rocket.

Read & React Documents reveal IDF killed wanted Palestinians against court guidelines Responses: 178 Israel asks Bush to explain its 'special relationship' with U.S. to Obama Responses: 115 Settler teens rampage through Palestinian neighborhood in Hebron Responses: 126 Aluf Benn: Obama's challenge will be to persuade Netanyahu to advance peace Responses: 57 Judea Pearl: Israel and Palestinians should apologize to each other Responses: 52 More Headlines 01:11 At least 80 people dead, hostages taken in multiple Mumbai attacks 23:55 AG seeks to indict Olmert over double-billing affair 22:07 Pines-Paz: It's a tragic day for Israel when a PM is indicted 23:44 Barak: We will evacuate settlers from Hebron house, by force if necessary 18:30 Lebanon asks Iran to supply its army with midsize weapons 23:40 UN watchdog clears Syria bid for atomic aid, despite world doubts 01:30 Who stole Hitler's golden bookmark? 17:27 Holocaust survivor to meet her Polish savior after 60 years 19:25 Haredi parties absent from Jerusalem coalition for first time in decades 18:29 Amid nuclear tensions, Iran says it successfully launched rocket 21:46 Borat's brother - a.k.a. Erran Baron Cohen - releases Hanukkah CD 18:28 Livni urges Thailand to commute Israeli drug smugglers' death sentence 18:28 Hamas, Fatah women brawl in Gaza as factional tempers flare 18:19 Short on fuel, Gazans use car batteries to restart power plant 13:31 Ban: Israel, Lebanon must 'seize the moment' and make peace 18:22 Settler rabbi: Peace Now chief should be jailed for treason Previous Editions Select Day 26 nov 25 nov 24 nov 23 nov 21 nov 20 nov 19 nov 18 nov 17 nov 16 nov 14 nov 13 nov

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