Israel Second-Quarter Growth Revised Down to 14.9% on Weaker Exports
Israel's second-quarter GDP growth for 2026 was revised down to 14.9% annualized, driven by sharp drops in exports and equipment investments.
Israel's economic recovery from the impact of the recent conflict with Iran has been slower than previous estimates. According to a revised second estimate by the Central Bureau of Statistics, the Israeli economy grew at an annualized rate of 14.9% in the second quarter of 2026 compared to the first quarter, down from the 15.4% estimate reported a month ago.
The sharpest downward revision was recorded in exports of goods and services. The Bureau now estimates that exports grew by 16.6% between quarters, instead of the 25.2% previously reported. Investment in machinery and equipment also experienced a sharp reversal, shifting from 23.5% growth to a 6.5% decline.
The decline in exports and investments was partially offset by an increase in estimates for private and public consumption, as well as non-residential construction. In practice, this represents a relatively moderate weakening of half a percentage point in the annualized growth rate, rather than a collapse of all growth components at once.
The Bureau notes that such revisions are a routine part of the publication process. On average, an estimate updated about a month after the initial release shifts by only about a tenth of a percentage point, making the current change not considered unusual. Furthermore, looking at the first half of 2026 against the second half of last year—the index recommended by the Bureau to neutralize war fluctuations—growth was actually revised upward, from 3.2% to 3.5%. The third and final estimate for the quarter is expected to be published in about a month.
