Israel

Israel GDP

Israel GDP

Economic Growth in Israel

The Israeli economy recorded an average growth rate of 4.2% in the decade to 2022, above the 2.0% average for the Middle East & North Africa region. In 2022, the real GDP growth was 6.4%. For more GDP information, visit our dedicated page.

Israel GDP Chart

Note: This chart displays Economic Growth (GDP, annual variation in %) for Israel from 2014 to 2023.
Source: Central Bureau of Statistics Israel.

Israel GDP Data

2018 2019 2020 2021 2022
Economic Growth (GDP, ann. var. %) 4.2 3.8 -1.4 9.3 6.4
GDP (USD bn) 375 400 412 490 525
GDP (ILS bn) 1,347 1,425 1,417 1,582 1,764
Economic Growth (Nominal GDP, ann. var. %) 4.8 5.8 -0.5 11.6 11.5

GDP records fastest upturn since Q4 2021 in Q1

GDP bounced back in Q1, expanding 14.1% in seasonally adjusted annualized rate terms (SAAR), contrasting the 21.7% contraction tallied in the fourth quarter of last year. Q1's reading marked an over two-year high, but was slightly below market expectations and meant that the economy is still smaller than it was before the war with Hamas erupted in October 2023. On an annual basis, GDP declined 0.6% in Q1, following the previous period's 4.7% fall.

The upturn reflected improvements in private consumption and fixed investment compared to the previous period. Private consumption growth hit an over two-year high of 26.3% in the first quarter (Q4 2023: -27.2% SAAR). Government spending growth waned to 7.1% in Q1 (Q4 2023: +86.3% SAAR). Fixed investment rebounded, growing 49.2% in Q1, contrasting the 68.8% contraction in the previous quarter. On the external front, exports of goods and services fell at a softer pace of 11.0% in Q1 (Q4 2023: -21.7% SAAR). In addition, imports of goods and services bounced back, growing 32.7% in Q1 (Q4 2023: -33.2% SAAR), marking the best reading since Q4 2020.

The outlook hinges on the evolution of the conflict with Hamas. For now, our Consensus is for the economy to grow further in Q2, albeit at a much slower rate than in Q1, as activity gradually normalizes following the steep contraction at the end of last year. That said, any broadening of the conflict—for example, if fighting with Hezbollah intensifies—could throw the economic recovery off course.

Consensus Forecasts and Projections for the next ten years

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Israeli GDP projections for the next ten years from a panel of 20 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable GDP forecast available for Israeli GDP.

Download one of our sample reports to visualize what a Consensus Forecast is and see our Israeli GDP projections.

Want to get access to the full dataset of Israeli GDP forecasts? Send an email to info@focus-economics.com.

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