GDP growth recovered strongly in the third quarter of 2025, after the economy contracted during the second quarter due to the war with Iran.
Israel’s gross domestic product (GDP) growth recovered strongly in the third quarter of 2025, after the economy contracted during the second quarter. The Israeli economy grew an impressive 12.4% in the third quarter, in annualized terms, compared with the previous quarters, according to the preliminary estimate of the Central Bureau of Statistics.
The encouraging figures show a rise of 14.9% in business GDP and a jump of 23% in private consumption in the third quarter in annualized terms. Investment in fixed assets jumped 36.9% in the third quarter.
The Central Bureau of Statistics said, “”The sharp increase in GDP in the third quarter of 2025 reflects a significant increase in private consumption data, exports of goods and services, and investment in fixed assets after large declines in the second quarter of the year due to the war with Iran.”
The Israeli economy grew 3.5% in the third quarter of 2025 compared with the third quarter of 2024, above the Ministry of Finance’s annual growth forecast of 2.8% for 2025.
Published by Globes, Israel business news – en.globes.co.il – on November 16, 2025.
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