A Reuters poll of economists had forecast growth of 2.5% in
the final three months of last year.
In 2022, the average growth among OECD nations was 2.8%.
On a per capita basis, Israel's economy - which produced
some $500 billion last year - grew 4.4% versus an OECD average
of 2.6%.
Helped by a surge in immigration from former Soviet states
and a decline in mortality, Israel's population rose 2.2% last
year and now stands at 9.66 million.
The bureau noted that should this rapid increase continue,
Israel's population will reach 10 million in mid-2024. Should it
rise at a more normal rate of 1.8%, the 10 million mark will be
hit by the end of next year, it said.
Economic growth in Israel is expected to slow sharply in
2023 to a rate of near 3%, with central bank rate hikes expected
to dampen spending.
The strong growth data come after the bureau on Wednesday
reported that Israel's inflation rate rose to 5.4% in January
-its highest rate since October 2008 - from 5.3% in December.
The Bank of Israel has steadily raised its benchmark
interest rate to 3.75% from 0.1% last April in a bid
to rein in inflation. Policymakers are expected to raise the
rate to at least 4% at its next rates decision on Monday.
Despite rising prices and a very high cost of living,
economic growth in 2022 was led by a 7.5% gain in consumer
spending - more than half of economic activity - while exports
grew 7.9% and investment in fixed assets rose 9.3%.
More than half of Israel's exports come from a booming high
tech sector, which accounts for 11% of the country's workforce
and 15% of total economic activity.
(Reporting by Steven Scheer; Editing by Alison Williams and
Hugh Lawson)
(Adds details, changes dateline to TEL AVIV)
By Steven Scheer
TEL AVIV, Feb 16 (Reuters) - Israel's economy grew 6.5%
in 2022 - slower than 2021's 8.6% expansion but still much
stronger than most Western countries - the Central Bureau of
Statistics said on Thursday, citing solid growth in consumer
spending, exports and investment.
The full-year reading exceeded the 6.3% projected by the
Bank of Israel and the Finance Ministry following a
faster-than-expected annualised 5.8% expansion in the fourth
quarter , according to an initial estimate.
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