Israel's Economic Growth Revised Downward for Q2 2026

Israel's Central Bureau of Statistics (CBS) has revised down its estimate for the country's economic growth in the second quarter of 2026. The annual growth rate was adjusted from 15.4% to 14.9%, and the quarterly growth rate from 3.6% to 3.5%.

Further details revealed that GDP excluding overseas production grew by 3.2% quarter-over-quarter, a decrease from the previously reported 3.4%. The business sector's GDP saw a quarterly increase of 3.6% (15.4% annually), down from an initial estimate of 3.9%. Export growth also fell short of earlier projections, with exports excluding high-tech rising by 3.9% instead of 5.8%, and total exports including high-tech growing by 5.8% quarterly, revised from 7.8%.

Investment in fixed capital was also re-evaluated, showing a 4.1% increase compared to the initial 6.3% estimate. Conversely, components of GDP driven by government spending were revised upward. Public consumption expenditure increased by 22.2% (previously 19.5%), and defense spending rose by 19.8% (previously 14.7%).