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.
Lebanon’s president will not speak to Israel’s prime minister in the near future, Lebanese officials said on Thursday, dealing a blow to U.S. efforts to expand contacts between the enemy states as Pakistan said peace in Lebanon was vital to ending the Iran war.
A Frenchman whose role in a fatal hit-and-run in Israel more than a decade ago triggered a diplomatic dispute between Paris and Jerusalem, was shot dead on a street in the wealthy Paris suburb of Neuilly-sur-Seine on Thursday, French prosecutors said.
A diplomatic breakthrough may be imminent in the Middle East. US President Donald Trump announced late Wednesday that Israeli and Lebanese leaders are set to speak by phone for the first time in 34 years, a potential milestone in a conflict that has kept the two countries in a state of war since Israel's establishment in 1948.
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