Israel Q3 GDP Rebounds to Six-Quarter High

2025-11-16 23:43 By Chusnul Chotimah 1 min. read

Israel’s economy grew at an annualized rate of 12.4% in Q3 of 2025,recovering sharply from an upwardly revised 4.3% contraction in the previous quarter, preliminary estimates showed.

It marked the fastest GDP growth since the first quarter of 2024, mainly boosted by surges in private consumption (23%), fixed investment (36.9%), and exports (23.3%).

Meanwhile, government spending grew by 4.4%.

“The sharp increase in GDP in the third quarter of 2025 reflects a significant rise in private consumption, exports of goods and services, and investment in fixed assets after large declines in the second quarter of the year due to the war with Iran,” the Central Bureau of Statistics said.

Economic growth was 1% in 2023 and is projected to grow 2.5% in 2024, according to the Bank of Israel, whose estimate is slightly weaker than 2.8% from the Finance Ministry.

But growth, held back somewhat during the two-year Gaza war, is forecast to expand around 5% in 2026.



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