GDP reading: GDP declined 3.5% in seasonally adjusted annualized rate terms (SAAR) in the second quarter, contrasting the 3.1% expansion...
Economic Growth in Israel
Israel's economy recorded an average growth rate of 3.5% in the decade to 2024, compared to the 2.1% average for Middle East & North Africa. In 2024, real GDP growth was 0.7%. For more GDP information, visit our dedicated page.
Israel GDP Chart
Note: This chart displays Economic Growth (GDP, annual variation in %) for Israel from 2024 to 2018.
Source: Macrobond.
Israel GDP Data
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Economic Growth (Real GDP, ann. var. %) | -1.6 | 9.3 | 6.2 | 1.9 | 0.6 |
| GDP (USD bn) | 411 | 490 | 525 | 511 | 542 |
| GDP (ILS bn) | 1,415 | 1,582 | 1,764 | 1,883 | 2,006 |
| Economic Growth (Nominal GDP, ann. var. %) | -0.6 | 11.8 | 11.5 | 6.7 | 6.6 |
GDP records first contraction since Q4 2023 in the second quarter
GDP reading: GDP declined 3.5% in seasonally adjusted annualized rate terms (SAAR) in the second quarter, contrasting the 3.1% expansion seen in the first quarter and marking the worst result since Q4 2023. The contraction was caused by the two-week economic shutdown during conflict with Iran in June.
Broad-based decline: Household spending declined at a milder pace of 4.1% SAAR in Q2, following a 6.0% contraction in Q1. Government spending deteriorated 1.0% in Q2 (Q1: +1.9% SAAR), while fixed investment contracted 12.3% (Q1: +6.4% SAAR). Exports of goods and services slid at a quicker rate of 6.9% in Q2 (Q1: -2.2% SAAR). In addition, imports of goods and services growth waned to 0.6% in Q2 (Q1: +5.3% SAAR).
GDP outlook: The economy should return to growth in Q3 now that Iran and Israel have reached a ceasefire.
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 22 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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