After a sharp contraction earlier this year, Israel’s economy roared back to life in the third quarter of 2025, posting an impressive 12.4% annualized growth, according to preliminary data released by the Central Bureau of Statistics (CBS).
Year-on-year, Israel’s economy expanded 3.5% in Q3 2025, beating the Finance Ministry’s full-year growth forecast of 2.8% © Mena Today
After a sharp contraction earlier this year, Israel’s economy roared back to life in the third quarter of 2025, posting an impressive 12.4% annualized growth, according to preliminary data released by the Central Bureau of Statistics (CBS).
The rebound was powered by a surge in business activity, private consumption, and investment, marking a strong recovery from the second quarter downturn triggered by the conflict with Iran.
Business sector GDP soared 14.9%, while private consumption jumped 23%, reflecting renewed consumer confidence. Meanwhile, investment in fixed assets spiked 36.9%, signalling growing optimism across industries.
“The sharp increase in GDP in the third quarter reflects a significant rebound in private consumption, exports, and investment following major declines earlier in the year,” the CBS said in its statement.
Year-on-year, Israel’s economy expanded 3.5% in Q3 2025, beating the Finance Ministry’s full-year growth forecast of 2.8%.
The strong recovery underscores the resilience of Israel’s economy despite geopolitical challenges, and points to a potential full-year rebound as domestic demand and exports continue to strengthen.
The Israeli military said it had begun targeted strikes in southern Lebanon on Wednesday in response to a "Hezbollah violation", a day after the latest round of U.S.-facilitated talks between Israel and Lebanon took place in Rome.
The latest round of U.S.-facilitated talks between Israel and Lebanon began on Tuesday in Rome and will continue through Thursday, State Department spokesperson Tommy Pigott said.
Saudi oil giant Aramco announced Tuesday a 44% surge in net profit for the second quarter compared to the same period last year, driven by soaring crude prices amid the war in the Middle East.
To make this website run properly and to improve your experience, we use cookies. For more detailed information, please check our Cookie Policy.
Necessary cookies enable core functionality. The website cannot function properly without these cookies, and can only be disabled by changing your browser preferences.
