GDP in Israel

Israel - GDP
GDP records sharpest contraction since Q2 2020 in the first quarter
GDP fell 1.6% in seasonally-adjusted annualized rate terms (SAAR) in the first quarter, contrasting the 15.6% expansion tallied in the fourth quarter of last year and undershooting market expectations of modest growth. Q1's reading marked the worst result since Q2 2020. The contraction was partly the result of a challenging base of comparison, following three consecutive quarters of robust growth. Excluding net taxes on imports—which often distort Israel’s GDP figures due to fluctuations in car imports—the economy contracted 3.0%.
The downturn was broad-based, with private consumption, public spending, fixed investment and exports all weakening. Household spending contracted 0.7% in Q1 (Q4 2021: +18.2% SAAR). Public spending deteriorated, contracting 7.0% in Q1 (Q4 2021: +12.9% SAAR). Fixed investment growth fell to 3.3% in Q1 (Q4 2021: +14.7% SAAR) amid declining industrial investment—potentially linked to the tumbling value of the Nasdaq stock exchange, where many Israeli tech firms are listed.
Exports of goods and services contracted 11.0% in Q1, marking the worst reading since Q2 2020 (Q4 2021: +24.3% SAAR). In addition, imports of goods and services growth moderated to 17.3% in Q1 (Q4 2021: +28.5% SAAR).
On an annual basis, economic growth lost momentum, cooling to 9.6% in Q1, compared to the previous period's 11.1% increase.
Looking ahead, the economy will return to growth. However, the expansion will be more moderate than that observed last year, due to tighter monetary policy, higher inflation, a less favorable external environment and a normalization of demand post-pandemic.
FocusEconomics analysts estimate the economy expanding 5.1% in 2022, unchanged from last month’s forecast, before growing 3.6% in 2023.
Israel - GDP Data
2015 | 2016 | 2017 | 2018 | 2019 | |
---|---|---|---|---|---|
Economic Growth (GDP, annual variation in %) | 2.2 | 4.0 | 3.6 | 3.5 | 3.5 |
Israel GDP Chart

Source: Central Bureau of Statistics
Israel Facts
Value | Change | Date | |
---|---|---|---|
Bond Yield | 0.98 | -1.69 % | Jan 01 |
Exchange Rate | 3.46 | -0.37 % | Dec 31 |
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Economic News
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Israel: Composite State of the Economy Index growth speeds up in April
June 1, 2022
The Bank of Israel’s Composite State of the Economy Index grew 0.18% month-on-month in seasonally-adjusted terms in April (March: +0.09% mom).
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Israel: Manufacturing PMI rises to six-month high in April
May 24, 2022
The Bank Hapoalim/IPLMA Manufacturing Purchasing Managers’ Index (PMI) rose to 51.2 in April from March's 47.4.
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Israel: Bank of Israel hikes rates in May
May 23, 2022
At its 23 May meeting, the Bank of Israel (BoI) raised the policy rate from 0.35% to 0.75%—the highest level since 2014. The decision to tighten policy was driven by inflation, which has moved further above the Central Bank’s 1.0–3.0% target range in recent months, spurred by higher international commodity prices.
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Israel: GDP records sharpest contraction since Q2 2020 in the first quarter
May 16, 2022
GDP fell 1.6% in seasonally-adjusted annualized rate terms (SAAR) in the first quarter, contrasting the 15.6% expansion tallied in the fourth quarter of last year and undershooting market expectations of modest growth.
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Israel: Inflation comes in at highest level since June 2011 in April
May 15, 2022
Consumer prices rose 0.77% in April over the previous month, picking up from the 0.58% rise logged in March.