Israel's economy expanded 7.8 percent in the fourth quarter of 2010, far beyond all previous expectations.
Israel's GDP rose 4.5 percent in 2010 -- the fifth-highest growth rate among the 34 members of Organization for Economic Cooperation and Development (OECD), the Jerusalem-based Central Bureau of Statistics reported Wednesday, noting that the average annual growth rate of OECD states last year was only 2.8 percent, while the growth rate in Europe stood at 1.7 percent.
The Central Bureau of Statistics attributed Israel's steep growth in 2010 to several factors: a 4.5 percent rise in private consumption; an 18.8 percent rise in investment in fixed assets; a sharp increase in public consumption; and a rise in exports of commodities and services.
Israeli Prime Minister Benjamin Netanyahu and Finance Minister Yuval Steinitz expressed satisfaction over the report.
"The sharp growth attests to an increase in Israeli citizens' standard of living and stems from a responsible economic policy that does not violate the budgetary framework," Netanyahu said in a statement issued by the Prime Minister's Bureau on Thursday.
Netanyahu also noted that his policy, which he and Steinitz intend to maintain in the future as well, has created 100,000 jobs in 2010, bringing the unemployment rate in Israel to the lowest level in the developed world.