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Economic Reports

Investor's Review

Issue No. 120
August 2014

Israel Macro Economic Review


Business sector growth moderated in the second quarter of the year, and is likely to moderate further in the third quarter due to operation “Protective Edge”


The composite state-of-the-economy index increased 1.4% in annualized terms in the second quarter of the year, below the 2% growth rate registered in the first quarter, in continuation of the moderating trend since the beginning of 2011. The slowdown in the growth of the composite index in the second quarter stems from, among other things, a slowdown in activity in recent

months in goods exports, industrial production, and turnover in the trade and services sectors. It is noteworthy that a number of indicators supported an increase in the index recently, including the

import of consumption goods and services exports.



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