The Israeli economy recorded during the past year the slowest pace of growth in two decades, with the exception of the Korona pandemic, due to the repercussions of the war on the Gaza Strip.
According to the statement of the Central Bureau of Statistics in Israel, the achievement of the economy of the economy reached only 1%, which is one of the lowest rates in the member states of the Organization for Economic Cooperation and Development. He had achieved 1.8% growth in 2023.
The Israeli Calclast newspaper pointed to a negative growth of the per capita portion of GDP for the second year in a row, as well as negative growth in the business sector and a sharp decline in investments and exports, namely the two main engines for growth in Israel.
Israel’s economy recorded 1.5% in 2020 due to the impact of the Corona’s pandemic.
Investments in Israel decreased by about 5.9%, compared to their level in 2023, also exports decreased by more than 5.6% compared to the previous year. What led to slowdown during the entire year.
The per capita portion of the domestic product decreased by 0.3% due to the repercussions of the war on the Gaza Strip, the increase in inflation and the high prices.
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Consumer confidence index at the lowest level
Two days ago, he announced that the consumer confidence index in Israel for 2024 recorded its lowest level since its calculation in March 2011, when the annual rate fell to “-27%” compared to “-21%” in 2023, which reflected the escalation of the case Economic pessimism among citizens, according to Calist.
The report, issued by the Central Bureau of Statistics, explained that this sharp decline makes the year 2024 the most negative since the start of the index’s measure, even in comparison with the Corona pandemic period, which witnessed higher levels of confidence between consumers.
The index, which ranges between “-100” and “+100”, depends on the evaluation of citizens of the general economic situation, their future expectations, and their plans on savings and spending on major purchases. The negative values of the index indicate increasing pessimism, while the values close to zero reflect the case of The anticipation without expecting a fundamental change in economic conditions.
Consumer confidence is an important measure that reflects the optimism or pessimism of individuals over the current and future economic conditions. The decrease in this indicator in Israel during the past year reflects the negative influence of consumer morale due to the war launched by Israel on the Gaza Strip since October 2023, and led to internal crises in various directions, and therefore this may undoubtedly reduce consumer spending and its impact on Economic growth.
The consumer confidence index plays a major role in predicting the economic movement, as it is considered a pre -emptive indicator of economic changes before it is reflected in the data of GDP or unemployment rates. It also affects economic policies, as decision makers help assess the need for economic interventions to stimulate the economy, as well as being an important tool for investors and companies to make strategic decisions based on consumer confidence.
Despite the sharp decline in consumer confidence, stock markets increased by 29% during the year 2024, in addition to an increase in individual consumption by 2.6%. However, this rise in consumption was concentrated in perennial and semi -perennial goods, while the consumption of services for the individual decreased by 1%, which reflects the tendency of families towards spending on concrete goods at the expense of services in periods of economic uncertainty.
