Israel Q4 GDP Growth Revised Up in 2nd Estimates

2026-03-10 11:17 By Kyrie Dichosa 1 min. read

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.



News Stream
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.
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