3.9% Decline in GDP Second Quarter 2025

Jerusalem, 23 October, 2025 (TPS-IL) — Israel’s Central Bureau of Statistics reported the “National Accounts: Third Estimate for the Second Quarter of 2025.”

Second quarter of 2025 compared to first quarter of 2025 (seasonally adjusted change in annual calculation):

3.9% decline in GDP (1.0% quarterly)

A 6.8% decline in business GDP (1.7% quarterly)

A 1.0% decrease in public consumption spending (0.3% quarterly)

A 4.8% decrease in private consumption spending (1.2% quarterly)

A 12.8% decrease in fixed asset investments (3.4% quarterly)

A 2.2% decrease in exports of goods and services excluding start-ups and diamonds (0.6% quarterly)

A 3.7% increase in imports of goods and services excluding defense imports, aircraft carriers and diamonds (0.9% quarterly)

Changes in the second quarter of 2025 were significantly affected by Operation Rising Lion, especially private consumption spending and investment in fixed assets.

Second quarter of 2025 compared to second quarter of 2024 (seasonally adjusted change):

1.4% increase in GDP

1.0% increase in business GDP

1.2% increase in public consumption spending

0.6% increase in private consumption expenditure

7.3% increase in fixed asset investments

A 3.6% increase in exports of goods and services excluding start-ups and diamonds

An 11.0% increase in imports of goods and services excluding defense imports, aircraft carriers and diamonds.

This estimate is based on data sources, some of which are not final or complete. The estimate may be updated upon receipt of final data.

The next estimate, based on more complete data, will be published on November 16, 2025.

The resources available to the economy (gross domestic product and imports)
Gross domestic product, at constant prices and after deducting the effect of seasonality, decreased in the second quarter of 2025 by 3.9% compared to the previous quarter (4.0% in the previous estimate), after an increase of 3.1% in the first quarter of 2025.

Gross domestic product per capita fell by 4.9% on an annualized basis.

In the first half of 2025, gross domestic product increased by 0.9% on an annualized basis compared to the previous half.