Israel's GDP Growth Revised Downward to 14.9% in Second Quarter
Translated & summarized from Globes by baba
Israel's GDP growth for the second quarter was revised down to 14.9%. The Central Bureau of Statistics attributed the rebound to post-war recovery, though adjusted figures excluding foreign-based tech companies show slower growth.
The story in 5 lines · by baba
- Israel's Q2 GDP growth revised to 14.9% from 15.4%.
- Q1 GDP decline adjusted to 1.7% from 2.2%.
- Widespread economic rebound noted across sectors.
- Growth excluding foreign tech firms' impact is significantly lower.
- Investment and trade figures also show mixed trends.
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.
