Israel's economy contracted at an annualized rate of 3.3% in the first quarter of 2026, reversing a downwardly revised 2.9% growth in the fourth quarter of 2025. It was the first contraction in the economy since the second quarter of 2025, due to the impact of the war with Iran. Consumer spending dropped 4.7%, government spending fell 4.8%, and exports declined 3.7%. By contrast, fixed investment grew 12.6%. The Bank of Israel currently expects the economy to grow by 3.8% this year, depending on whether the ceasefire reached last month with Iran holds. Last year, the country’s economy grew 2.9% in 2025 and was expected to rebound in 2026 to more than 5% growth following a ceasefire in October that ended major fighting in the two-year Gaza war. source: Central Bureau of Statistics, Israel

GDP Growth Annualized in Israel decreased to -3.30 percent in the first quarter of 2026 from 3.30 percent in the fourth quarter of 2025. GDP Growth Annualized in Israel averaged 3.88 percent from 1995 until 2026, reaching an all time high of 39.70 percent in the third quarter of 2020 and a record low of -28.20 percent in the second quarter of 2020. This page provides the latest reported value for - Israel GDP Growth Annualized - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Israel GDP Growth Annualized - data, historical chart, forecasts and calendar of releases - was last updated on June of 2026.

GDP Growth Annualized in Israel decreased to -3.30 percent in the first quarter of 2026 from 3.30 percent in the fourth quarter of 2025. GDP Growth Annualized in Israel is expected to be 1.90 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Israel GDP Growth Annualized is projected to trend around 3.40 percent in 2027 and 1.80 percent in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-04-16 10:00 AM
GDP Growth Annualized 3rd Est
Q4 3.3% 12.7% 4.2% 4.2%
2026-05-17 10:00 AM
GDP Growth Annualized 1st Est
Q1 -3.3% 2.9% -2.8%
2026-06-16 10:00 AM
GDP Growth Annualized 2nd Est
Q1 2.9%


Related Last Previous Unit Reference
Full Year GDP Growth 2.90 1.00 percent Dec 2025
GDP Annual Growth Rate 1.70 4.00 percent Mar 2026
GDP Constant Prices 437142.30 440850.00 ILS Million Mar 2026
GDP from Agriculture 4776.30 4860.30 ILS Million Sep 2025
GDP from Construction 19821.70 19695.30 ILS Million Dec 2025
GDP from Public Administration 72054.80 70100.60 ILS Million Dec 2025
GDP from Transport 12472.70 14913.50 ILS Million Dec 2025
GDP from Utilities 8012.70 6754.50 ILS Million Sep 2025
GDP Growth Annualized -3.30 2.90 percent Mar 2026
GDP Growth Rate -0.80 0.70 percent Mar 2026
Gross Fixed Capital Formation 107355.10 104216.00 ILS Million Mar 2026
Gross National Product 547663.40 528159.00 ILS Million Dec 2025


Israel GDP Growth Annualized
GDP Annualized Growth Rate shows the gdp growth that would be registered if the quarter-on-quarter rate of change were maintained for a full year.
Actual Previous Highest Lowest Dates Unit Frequency
-3.30 2.90 39.70 -28.20 1995 - 2026 percent Quarterly
SA

News Stream
Israel Economy Shrinks 3.3% in Q1
Israel's economy contracted at an annualized rate of 3.3% in the first quarter of 2026, reversing a downwardly revised 2.9% growth in the fourth quarter of 2025. It was the first contraction in the economy since the second quarter of 2025, due to the impact of the war with Iran. Consumer spending dropped 4.7%, government spending fell 4.8%, and exports declined 3.7%. By contrast, fixed investment grew 12.6%. The Bank of Israel currently expects the economy to grow by 3.8% this year, depending on whether the ceasefire reached last month with Iran holds. Last year, the country’s economy grew 2.9% in 2025 and was expected to rebound in 2026 to more than 5% growth following a ceasefire in October that ended major fighting in the two-year Gaza war.
2026-05-17
Israel Q4 GDP Growth Slows Sharply to 3.3%
Israel's economy expanded at an annualized rate of 3.3% in Q4 2025, below previous estimates of 4.2% growth and falling sharply from a upwardly revised 12.7% in the previous quarter. Domestic demand weakened, with a 3% contraction in consumer spending and a 5.7% decline in fixed assets investments. In turn, government spending increased 1.8%, while business GDP increased 6%. On the external side, imports of goods and services, excluding defense imports, ships, aircraft and diamonds decreased 2.8% and exports of goods and services, excluding start-ups and diamonds increased 20.2%. For the full year, the economy expanded 2.9%, accelerating from 1% growth in the previous year.
2026-04-16
Israel Q4 GDP Growth Revised Up in 2nd Estimates
Israel’s economy expanded at an annualized rate of 4.2% in Q4 2025, exceeding initial estimates of 4%, but marking a sharp slowdown from a downwardly revised 12.1% growth in Q3. The moderation was largely driven by weaker domestic demand, with private consumption contracting 3.7% and fixed asset investment declining 4.0%. These declines were partially offset by a modest 1.5% increase in public consumption. Meanwhile, business GDP showed resilience, rising 7.2% and providing some support to overall economic activity. On the external front, exports of goods and services, excluding start-ups and diamonds, rose 24.5%, while imports fell 2.9%, excluding defense-related imports, ships, aircraft, and diamonds. For the full year, Israel’s economy grew 2.9%, revised down from initial estimates of 3.1%, but accelerating from 1% growth in the previous year.
2026-03-10