The Central Bureau of Statistics today published a revised estimate of Israel’s second quarter GDP growth, which was revised slightly downward to 14.9%, on an annualized basis, from the initial estimate last month of 15.4%. The figure for GDP change in the first quarter of 2026, during which the war with Iran took place was also revised. The Central Bureau of Statistics' previous estimate had indicated a 2.2% GDP contraction, a figure that has now been moderated to 1.7%.
The significant second quarter GDP growth is attributed to a rebound following the slowdown caused by the war in Iran. The rise was seen across the entire Israeli economy: a 15.4% rise in business-sector GDP (3.6% on a quarterly basis); a 22.2% rise in public consumption spending (5.1% quarterly); a 15% rise in private consumption spending (3.5% quarterly); a 4.1% rise in fixed asset investment (1% quarterly); a 16.6% rise in exports of goods and services, excluding startups and diamonds (3.9% quarterly); and a 24.4% rise in imports of goods and services, excluding defense imports, ships, aircraft, and diamonds (5.6% quarterly).
However, a comparison between the first half of 2026 and the second half of 2025 reveals a much more moderate picture. While a 3.5% rise in GDP was recorded, excluding the activity of Nvidia and similar companies, which are registered in Israel but manufacture and sell abroad, reveals that GDP grew only 1.1%. The other increases were also more moderate: a 4.9% rise in business-sector GDP, a 1.2% increase in public consumption expenditure, and a 0.1% decline in private consumption. There were also impressive increases in fixed asset investment (11.6%), exports (12.5%), and imports (22.4%), possibly driven by changes in the shekel-dollar exchange rate.
Published by Globes, Israel business news - en.globes.co.il - on September 16, 2026.
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