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Sunday . 11 January . 2026
Breaking Update

Israel Sees 4% Decline in GDP

Israel experiences a 4% decline in GDP in the second quarter of 2025, impacted by the "war with the dog". Business and public consumption spending also

Gil Tanenbaum Breaking News

Jerusalem, 18 September, 2025 (TPS-IL) — Israel saw a 4% decline in GDP (1% quarterly) in the second quarter of 2025 compared to first quarter of 2025, according to the seasonally adjusted change in annual calculations released by the Central Bureau of Statistics.

The was also:

A 6.9% decline in business GDP (1.8% quarterly)

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

A 4.4% decrease in private consumption spending (1.1% quarterly)

A 12.7% decrease in fixed asset investments (3.4% quarterly)

A 2.9% decrease in exports of goods and services excluding start-ups and diamonds (0.7% quarterly)

A 3.8% 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 the “war with the dog”, especially private consumption spending and investment in fixed assets.

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

1.5% increase in GDP

1% increase in business GDP

1.2% increase in public consumption spending

0.8% increase in private consumption spending

7.4% increase in fixed asset investments

A 3.3% increase in exports of goods and services excluding start-ups and diamonds

An 11% increase in imports of goods and services excluding defense imports, aircraft carriers and diamonds

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Gil Tanenbaum
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