16.12.202511:35:40UTC+00Israel Q3 GDP at Six-Quarter High

In the third quarter of 2025, Israel's economy saw an annualized expansion of 11%, though slightly less than the initial forecast of 12.4% growth. This marks a significant recovery from the revised 4.8% contraction experienced in the previous quarter, which was a result of the Iran conflict and tensions in Gaza. The latest growth rate is the most robust since the first quarter of 2024, primarily driven by substantial increases in private consumption, which rose by 21.6%, and fixed investment, which surged by 34%. Furthermore, government spending increased by 4.4%, and net trade contributed positively to the economy, with exports growing by 16.9% compared to a 13.7% rise in imports. The overall economic rebound mirrors a rapid recovery following the 12-day Iran conflict in June, during which the country faced a temporary shutdown due to intense missile strikes, as well as the easing of Gaza war constraints that had previously hindered activities by necessitating the mobilization of up to 300,000 military reserves. On a quarterly basis, the Israeli economy experienced a 2.6% growth in Q3 2025.