Israel's economic growth hits decade low in 2012

The Israeli economy grew 3.3 percent in 2012, hitting its lowest level in a decade, the Israeli Central Bureau of Statistics said in an assessment Monday. According to latest data, the Israeli gross domestic product in 2012 stood at 250 million U.S. dollars, while per capita growth has fallen from 3.1 percent in 2010 to 1.5 percent in 2012. Compared with an 1.8-percent increase in population, the country's gross domestic product grew only by 1.5 percent in 2012, 1.2 percentage points lower than 2011. The figures also showed that in 2012 the private consumption increased by 2.8 percent, 1 percentage point lower than that of the previous year. To make things worse, Israel is expecting tax hikes and price increases in 2013. Water prices are slated to rise by 3.5 percent in 2013, while the municipal taxes, known as arnona, are set to rise by 2 percent.