Sharp Decline in Israel’s Economy: GDP Contracts by 3.5% in Q2 2025
Israel’s economy has taken a significant hit, with GDP contracting by 3.5% in the second quarter of 2025, marking the largest decline since the third quarter of 2023, according to the Central Bureau of Statistics.
Kokcha News Agency – Israel’s economy has experienced a sharp downturn, with the Gross Domestic Product (GDP) contracting by 3.5% in the second quarter of 2025, according to the Central Bureau of Statistics. This is the largest decline since the third quarter of 2023, when the economy was impacted by the outbreak of war with Iran.
The report highlights several key factors contributing to the economic contraction:
– A 6.2% decline in business production.
– A significant 12.3% drop in fixed asset investments.
The Central Bureau of Statistics noted that the economic changes in the second quarter of 2025 were heavily influenced by the ongoing war with Iran, which has disrupted economic activities and led to increased uncertainty in the region.
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