GDP reading: GDP stagnated on a seasonally adjusted month-on-month basis in January, following 0.1% growth in the prior month. January’s...
Economic Growth in Israel
Israel's economy recorded an average growth rate of 3.5% in the decade to 2024, compared to the 2.1% average for Middle East & North Africa. In 2024, real GDP growth was 0.7%. For more GDP information, visit our dedicated page.
Israel GDP Chart
Note: This chart displays Economic Growth (GDP, annual variation in %) for Israel from 2014 to 2025.
Source: Macrobond.
Israel GDP Data
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Economic Growth (Real GDP, ann. var. %) | -1.6 | 9.3 | 6.2 | 1.9 | 0.6 |
| GDP (USD bn) | 411 | 490 | 525 | 511 | 542 |
| GDP (ILS bn) | 1,415 | 1,582 | 1,764 | 1,883 | 2,006 |
| Economic Growth (Nominal GDP, ann. var. %) | -0.6 | 11.8 | 11.5 | 6.7 | 6.6 |
Economic growth eases in the fourth quarter of 2025
GDP reading: Israel's GDP grew 4.0% in seasonally adjusted quarter-on-quarter annualized (SAAR) terms in Q4, following 12.7% growth in the previous quarter. The slowdown was expected given Q3’s reading was boosted by the economy reopening following June’s Iran-Israel conflict. The economy grew 3.0% in 2025 as a whole, the best reading since 2022—before the war with Hamas broke out.
Drivers: Relative to the previous quarter's data, readings in Q4 worsened for private consumption (-3.6% on a seasonally adjusted quarter-on-quarter annualized (SAAR) basis vs +22.2% in Q3), government consumption (+1.7% vs +3.9% in Q3), fixed investment (-6.4% vs +33.6% in Q3) and imports of goods and services (-2.0% vs +12.7% in Q3). In contrast, the reading for exports of goods and services improved in Q4 (+33.2% vs +20.1% in Q3). In annual terms, the economy grew 3.7% in Q4, following a 3.6% expansion in the prior quarter.
Panelist insight: On the outlook, Goldman Sachs analysts said: “We expect the unwinding of supply constraints to lead to a period of above-potential growth in Israel, leaving GDP on a growth path between the pre- and post-7 October 2023 trends. Today's upside surprise relative to our forecast mechanically boosts our 2026 growth forecast further, and now we expect +5.7% growth, while our 2027 growth forecast remains unchanged at +4.7% growth.”
Consensus Forecasts and Projections for the next ten years
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Israeli GDP projections for the next ten years from a panel of 23 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable GDP forecast available for Israeli GDP.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Israeli GDP projections.
Want to get access to the full dataset of Israeli GDP forecasts? Send an email to info@focus-economics.com.
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