Israel’s economy grew slower in the second quarter than previously thought, data showed on Tuesday, as Israel’s war in Gaza against the terrorist group Hamas continued to weigh on growth.
The Central Bureau of Statistics said in its third estimate that gross domestic product ILGDP=ECI rose by an annualized 0.3 percent in the April-June period, down from 0.7 percent reported a month ago and from an initial 1.2 percent published in August.
Gains in consumer and state spending and investment in fixed assets supported the economy while exports fell.
Lower growth estimate
Last week, the Bank of Israel trimmed its Israeli economic growth estimate in 2024 to 0.5% from a prior estimate of 1.5%.
Along with a weakening economy, inflation has spiked and central bank officials have warned of possible interest rate increases. It held rates steady last week for a sixth straight policy meeting.
New Israeli Shekel banknotes and coins are seen in this picture illustration taken November 9, 2021. (credit: NIR ELIAS/REUTERS)
First-quarter GDP growth was unrevised at 17.2%, as the economy bounced back from a steep contraction in the fourth quarter of 2023 when the war began.
