Israel's GDP in fixed prices and after seasonal factors grew by 4.7% on an annualized basis in the second quarter of 2010, the Central Bureau of Statistics reported. Due to the economic crisis in Europe, predictions were that the economy would only grow by 2.9%.
Growth in the economy is accelerating, having grown by 3.6% in the first quarter of 2010 and 4.3% in the fourth quarter of 2009.
This means that the economy grew by 4.1% on an annualized basis in the first half of 2010, after growing 3.3% in the second half of 2010 and contracting 1.5% in the first half of 2009.
Contributing factors to the Israeli economy's surprisingly strong growth in the second quarter of 2010 were a 15.8% rise in exports of goods and services compared with the preceding quarter, an 8.7% rise in private consumption, 10.9% rise in investments in fixed assets and a 2.8% rise in public expenditure not including defense, on an annualized basis.