Israel’s economic momentum slowed markedly in the fourth quarter of 2025, with annualized GDP growth easing to 3.3%, down from a previously reported 12.7% in the prior quarter. The updated figures, released on 16 April 2026, highlight a pronounced deceleration in activity as measured on a quarter‑over‑quarter basis.
The “actual” 3.3% reading for the fourth quarter of 2025 reflects the change in output compared with the third quarter of 2025, while the “previous” 12.7% figure captured the pace of expansion in the third quarter relative to the second quarter. This shift suggests that, after a surge in growth earlier in the year, the Israeli economy entered a more moderate phase at the end of 2025. Investors and policymakers will be watching upcoming data closely to determine whether this slowdown marks a temporary normalization or the start of a more persistent cooling trend.
