“Israeli” Economy Shrinks by 6.9 Percent

Translated by Staff, Al-Akhbar

The “Israeli” entity’s economy has shrunk by 6.9% since the first quarter of this year, compared to a 4.6% growth in last year’s last quarter, as revealed in the most recent figures published by the entity’s Central Bureau of Statistics [CBS].

The coronavirus pandemic and the general shutdown that resulted in the aftermath were the main reasons for this decline. According to the CBS, the travel and tourism industry were the most affected sectors, with an 85.2% decrease in services due to flight suspensions and the disruption of domestic tourism.

The decline in car imports which was negatively affected by the 23% decrease of commodity import, was reflected in the GDP. Meanwhile, the personal expenditure per capita decreased by 22.2%, and the personal consumption, excluding the "survival kits", decreased by 16.8% annually. In addition to the aforementioned, there was also a decrease in the consumption of food, cigarettes, clothing, footwear and other products.

In light of the shutdown restrictions imposed again, a further decline in the “Israeli” economy is expected, as unemployment rates increased to 26% in the first quarter of this year.