Israel rebounds fast

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.