In a surprising economic downturn, Israel's GDP has plummeted by -3.9% in the second quarter of 2025, as reported on October 16, 2025. This marks a significant reversal from the previous quarter's growth rate of 3.3%, reflecting a marked decline in economic activity that has caught analysts and policymakers by surprise.
The drop in GDP comes as a stark contrast to the country's earlier performance in the year, highlighting a volatile economic landscape. The current figure, based on a quarter-over-quarter comparison, represents a comparison of the change in the economic output from the current quarter to the previous quarter.
Economists are now examining the underlying factors contributing to this sudden contraction, including potential impacts from global market fluctuations, domestic policy shifts, and other socio-economic influences. As Israel navigates this challenging economic environment, stakeholders will be keenly watching for policy responses and potential recovery strategies to stabilize and re-energize growth in the upcoming quarters.
