Israel's GDP Growth Revised Downward to 14.9% in Second Quarter

Israel's Central Bureau of Statistics has updated its Gross Domestic Product (GDP) figures for the second quarter of the year, revising the growth rate slightly downward to 14.9% from a previous estimate of 15.4% in August. The bureau also adjusted the GDP change compared to the first quarter, which included the "Operation Iron Swords" military campaign. The initial estimate showed a 2.2% decline in GDP, now revised to a smaller decrease of approximately 1.7%.

The significant quarterly GDP growth of 3.5% in the second quarter was attributed by the bureau to a rebound following the slowdown caused by the war. This growth was widespread across the Israeli economy, with notable increases in business GDP (3.6% quarterly), public consumption expenditure (5.1% quarterly), private consumption expenditure (3.5% quarterly), fixed asset investments (1.0% quarterly), exports of goods and services excluding startups and diamonds (3.9% quarterly), and imports of goods and services excluding defense imports, aircraft, and diamonds (5.6% quarterly).

However, a comparison between the first half of the current year and the last half of 2025 reveals a more moderate picture. While the overall GDP increase of 3.5% was maintained, when excluding the activity of companies like Nvidia registered in Israel but operating abroad, the GDP growth was only 1.1%. Other increases were also more subdued, including a 4.9% rise in business GDP, a 1.2% increase in public consumption, and a 0.1% decrease in private consumption. Fixed asset investment saw a significant rise of 11.6%, exports increased by 12.5%, and imports by 22.4%, possibly influenced by currency exchange rate fluctuations.