Israel Posts Modest Economic Rebound
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Israel’s economy expanded by 3.4% on an annualized basis in the first quarter of 2025, according to preliminary data from the Central Bureau of Statistics. This marks a return to growth following a 5.4% contraction in Q4 2024, which reflected the economic impact of the war. The rebound was fueled primarily by increased public sector and defense spending, while private consumption and investment continued to lag.
Exports declined, and construction activity remained low due to ongoing labor shortages. Although the economy has turned a corner, it remains below pre-war levels. Analysts caution that further recovery will hinge on security stability and continued fiscal support.
Read more in Globes.
