Israel’s economy shrank at an annualized rate of 3.8% in the first quarter of 2026, following a downwardly revised 2.8% growth in the previous quarter, matching preliminary estimates. The contraction was driven largely by the "Harry’s Uproar" war, which disrupted economic activity. Domestic demand weakened, with consumer spending falling 4.9% and public consumption declining 4.8%. Net trade also weighed on GDP, as imports of goods and services, excluding defense imports, ships, aircraft, and diamonds, rose 1.8%, while exports of goods and services, excluding start-ups and diamonds, fell 32.7%. On the other hand, fixed asset investment increased by 12.8%. source: Central Bureau of Statistics, Israel

GDP Growth Annualized in Israel decreased to -3.80 percent in the first quarter of 2026 from 2.90 percent in the fourth quarter of 2025. GDP Growth Annualized in Israel averaged 3.88 percent from 1995 until 2026, reaching an all time high of 39.70 percent in the third quarter of 2020 and a record low of -28.20 percent in the second quarter of 2020. This page provides the latest reported value for - Israel GDP Growth Annualized - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Israel GDP Growth Annualized - data, historical chart, forecasts and calendar of releases - was last updated on July of 2026.

GDP Growth Annualized in Israel decreased to -3.80 percent in the first quarter of 2026 from 2.90 percent in the fourth quarter of 2025. GDP Growth Annualized in Israel is expected to be 2.10 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Israel GDP Growth Annualized is projected to trend around 3.40 percent in 2027 and 1.80 percent in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-06-16 10:00 AM
GDP Growth Annualized 2nd Est
Q1 -3.8% 2.9% -3.3%
2026-07-16 10:00 AM
GDP Growth Annualized 3rd Est
Q1 -3.8% 2.8% -3.8%
2026-08-17 10:00 AM
GDP Growth Annualized 1st Est
Q2 1.9%


Related Last Previous Unit Reference
Full Year GDP Growth 2.90 1.00 percent Dec 2025
GDP Annual Growth Rate 1.70 4.00 percent Mar 2026
GDP Constant Prices 437142.30 440850.00 ILS Million Mar 2026
GDP from Agriculture 3802.30 5022.00 ILS Million Mar 2026
GDP from Construction 17830.00 20749.40 ILS Million Mar 2026
GDP from Public Administration 72054.80 70100.60 ILS Million Dec 2025
GDP from Transport 12289.00 12914.40 ILS Million Mar 2026
GDP from Utilities 8012.70 6754.50 ILS Million Sep 2025
GDP Growth Annualized -3.80 2.90 percent Mar 2026
GDP Growth Rate -0.80 0.70 percent Mar 2026
Gross Fixed Capital Formation 107355.10 104216.00 ILS Million Mar 2026
Gross National Product 503651.70 546354.30 ILS Million Mar 2026


Israel GDP Growth Annualized
GDP Annualized Growth Rate shows the gdp growth that would be registered if the quarter-on-quarter rate of change were maintained for a full year.
Actual Previous Highest Lowest Dates Unit Frequency
-3.80 2.90 39.70 -28.20 1995 - 2026 percent Quarterly
SA

News Stream
Israel Economy Contracts 3.8% in Q1
Israel’s economy shrank at an annualized rate of 3.8% in the first quarter of 2026, following a downwardly revised 2.8% growth in the previous quarter, matching preliminary estimates. The contraction was driven largely by the "Harry’s Uproar" war, which disrupted economic activity. Domestic demand weakened, with consumer spending falling 4.9% and public consumption declining 4.8%. Net trade also weighed on GDP, as imports of goods and services, excluding defense imports, ships, aircraft, and diamonds, rose 1.8%, while exports of goods and services, excluding start-ups and diamonds, fell 32.7%. On the other hand, fixed asset investment increased by 12.8%.
2026-07-16
Israel Q1 GDP Revised to Sharper Contraction
Israel’s economy shrank at an annualized rate of 3.8% in the first quarter of 2026, following a downwardly revised 2.9% growth in Q4 2025, according to secondary estimates. The quarter's results were significantly affected by the "Harry's Roar" war, which disrupted economic activity and weighed on domestic demand. Private consumption declined 5.0%, while public consumption fell 4.8%. Meanwhile, business-sector output also contracted by 3.8%, adding to the weakness in overall economic activity. These declines were partially offset by a 12.8% increase in fixed asset investment. On the external front, exports of goods and services, excluding start-ups and diamonds, rose a modest 1.9%, while imports surged 32.7%, excluding defense-related imports, ships, aircraft, and diamonds.
2026-06-16
Israel Economy Shrinks 3.3% in Q1
Israel's economy contracted at an annualized rate of 3.3% in the first quarter of 2026, reversing a downwardly revised 2.9% growth in the fourth quarter of 2025. It was the first contraction in the economy since the second quarter of 2025, due to the impact of the war with Iran. Consumer spending dropped 4.7%, government spending fell 4.8%, and exports declined 3.7%. By contrast, fixed investment grew 12.6%. The Bank of Israel currently expects the economy to grow by 3.8% this year, depending on whether the ceasefire reached last month with Iran holds. Last year, the country’s economy grew 2.9% in 2025 and was expected to rebound in 2026 to more than 5% growth following a ceasefire in October that ended major fighting in the two-year Gaza war.
2026-05-17