ECONOMIC GROWTH AND CHANGES IN POPULATION
THE POPULATION OF ISRAEL 5755 / 1995
The National Economy and Immigration
The wave of immigration in 1990-1993, like its predecessors, caused the
Israeli economy to grow but placed it under pressure. The need for housing
put the construction industry under strain. The increased demand for food
and apparel attracted investments and created new jobs. The high
proportion of professionally trained immigrants with higher education
boosted Israel's human capital. Between 1984 and 1993, Gross Domestic
Product increased by 47%, business-sector product by 61%, per- capita
product by 17% (from $9,900 to $11,600), and Net National Product by 76%
(from $8.1 billion to $14.3 billion). [The figures for the period
preceding 1993 are taken from the Central Bureau of Statistics. Figures
for 1993 are based on estimates of the Economic Planning Authority.]
Private Consumption
Between 1984 and 1993, private-consumption expenditure increased from
$23.3 billion to $39.4 billion and per-capita private consumption from
$5,600 to $7,500. The average annual growth rate of private consumption
was 6%, exceeding the average annual GDP growth of 4.4%.
Consumption of durables increased at 13.5% per year, as against 6% growth
in economic consumption. Expenditure on private vehicles and home
appliances rose by 14% per year and expenditure at an average annual rate
of 8.8%.
The factors of private consumption changed during these years. The share
of private expenditure for food and clothing diminished from 35% in 1984
to only 25% in 1993. Concurrently, the share devoted to entertainment and
leisure rose from 20% to 23%. The general level of nutrition improved,
per-capita daily caloric consumption rising by 1.6%, from 3,020 in 1984 to
3,270 in 1993. Daily per-capita protein consumption also increased during
these years, from 94 grams to 97.