Israel's economy contracted by an annualized 7.1% in the first quarter, the Central Bureau of Statistics said on Monday, with the coronavirus outbreak hitting trade, investment and consumer and government spending. It was the first quarterly contraction of gross domestic product in Israel since 2012.
Exports fell 5.9% in the January-March period, while private spending slid 20.3% and investment in fixed assets dropped 17.3%. Imports declined 27.5% and government spending dipped 10.3%.
Follow Israel Hayom on Facebook and Twitter
The Bank of Israel has said it expected a poor first half of 2020 due to the virus that closed much of the economy for weeks and an improvement in the final six months of the year and into 2021.
Excluding net tax on imports for the quarter, which strips out volatility in auto sales and imports, GDP contracted 4.6%.
Fourth-quarter GDP was unrevised at an annualized growth rate of 4.6%, while Israel's economy grew 3.5% in 2019.
