CBS: Israeli economy to slow - 3Q growth rate slips to 3.4%

GDP growth rate slipped to 3.4% in the third quarter of 2011 from 3.5% in the second quarter and 4.7% in the first quarter of 2011. 
 
The Central Bureau of Statistics (CBS) reported last week that Israel's Gross domestic product grew an annualized 3.4% (vs 2.6% forecast) in the July-September period to beat forecasts.
 
GDP growth rate slipped to 3.4% in the third quarter of 2011 from 3.5% in the second quarter and 4.7% in the first quarter of 2011.
 
The CBS noted, however, that although the growth rate is the slowest rate in a year and a half, it is reasonable compared with the slump in most Western countries.
 
Growth in the third quarter was led by a 13% jump in investment in fixed assets, continuing a trend of double-digit gains. Government spending rose 3.2% after a big drop in the prior three months, while consumer spending edged up 0.9% -- slightly slower than in the third quarter. Exports slide 16.9%.
 
The CBS also noted that it registered 1% drop in the standard of living (GDP per capita) in the third quarter, the first decline in a long time.