Full coverage· Economy· Updated
Israel's Economy Grows Slower Than Expected in Q2, Driven by Government Spending
Israel's economy grew at a slower-than-expected 14.9% annual rate in the second quarter, driven by a significant increase in government spending. While private consumption and investment also recovered, imports outpaced exports, raising questions about the sustainability of the growth.
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What happened
- 01Israel's Q2 economic growth was 14.9% annually, a rebound from a previous contraction.
- 02Government spending, particularly on security, was a major driver of the growth.
- 03Imports grew faster than exports, indicating a shift in domestic demand.
- 04The sustainability of the growth depends on private sector and export performance.
- 05High government spending poses fiscal challenges for the future.
The coverage
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- Arab2
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