Israel’s GDP below estimates in Q2 ’24

Israel’s economy reached an annualised 0.3 per cent in the second quarter of 2024, slower than previously estimated, according to revised data from the Central Bureau of Statistics. This marks a decline from earlier estimates of 0.7 per cent and 1.2 per cent.

Growth was driven by consumer and state spending and investment in fixed assets, though exports fell. The Bank of Israel recently lowered its 2024 growth forecast to 0.5 per cent for 2024, down from 1.5 per cent, as the ongoing war on Gaza and neighbouring countries weigh on the economy.

Inflation has surged, and central bank officials have signalled potential rate hikes despite holding rates steady for six consecutive meetings. First-quarter (Q1) growth remained at 17.2 per cent, reflecting a recovery from a sharp contraction at the end of 2023.

Attribution: Reuters

Subediting: Y.Yasser