Israel’s gross domestic product (GDP) growth was 15.4% in the second quarter of 2026, on an annualized basis, recovering strongly from the first quarter, which was marred by the war with Iran. In quarterly terms, GDP growth in the second quarter was 3.6%, after a contraction of 2.2% in the first quarter. Most economists predicted that the second quarter's growth estimate would be about 10%, but the data published today by the Central Bureau of Statistics easily beat forecasts.
The data show that business output rose 16.6%, which is 3.9% in quarterly terms. Government spending on public consumption slightly exceeded the averages with an increase of 19.5% (4.6% quarterly), and private consumption also jumped by 14.7%, which is 3.5% in quarterly terms.
Trade data also recorded a dramatic jump. Exports of goods and services, excluding startups and diamonds, jumped 25.2%, while imports of goods and services, excluding defense imports, rose 22.7%.
The Central Bureau of Statistics reported, "The sharp increase in GDP in the second quarter of 2026 reflects a major rise in private consumption data, public consumption and exports of goods and services. These increases follow large declines in the first quarter of the year following the Iran war."
Published by Globes, Israel business news - en.globes.co.il - on August 16, 2026.
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