Israel GDP Growth Annualized

Israel’s economy expanded by 11% at an annualized rate in the third quarter of 2025, below preliminary estimates of a 12.4% growth, but recovering sharply from an upwardly revised 4.8% contraction in the second quarter caused by the Iran conflict and Gaza tensions. The latest figure marked the fastest GDP growth since the first quarter of 2024, reflecting a rapid recovery following the 12-day Iran conflict in June, which had temporarily shut down the economy due to heavy missile attacks, and easing constraints from the Gaza war, which had restrained activity as up to 300,000 civilians were called into military reserve duty. The rebound was mainly boosted by surges in private consumption (21.6%) and fixed investment (34%). Additionally, government spending grew by 4.4% and net trade added positively, with exports (16.9%) outpacing imports (13.7%). On a quarterly basis, the Israeli economy grew by 2.6% in Q3 2025.