Israeli GDP rebounds 15.4% as economy tops pre-war peak
Israel’s economy rebounded sharply in the second quarter of 2026, with GDP rising 3.6% from the previous quarter, equivalent to 15.4% growth on an annualized basis.
The recovery outpaced expectations from economists at JPMorgan, who had estimated growth of no more than 11%. It also pushed GDP 3.05% above its pre-war peak after just one quarter, reflecting a faster recovery than the rebound following the previous Israel-Iran conflict.
The data showed strength across several major economic indicators. Exports of industrial goods excluding diamonds jumped 55.2% on an annualized basis in the second quarter, while investment in information and communications technology rose 181.4%. Private consumption increased 14.7%, public consumption rose 19.5%, imports climbed 27%, and total resources available to the economy increased 26%.
The broader first-half figures also showed positive momentum. GDP grew 3.2% on an annualized basis compared with the second half of 2025, while quarterly GDP per capita rose 3% and crossed NIS 44,000 at 2020 prices. Business GDP, a key measure of non-government activity, grew 4.7% faster than total GDP during the first half.
The figures point to an economy that recovered quickly from wartime disruption, with particularly strong contributions from exports, technology investment, and business-sector activity.
Read more in Calcalist.
