Israel’s economy staged a dramatic rebound in the second quarter of 2026, with annualized GDP growth jumping to 15.4%, a sharp reversal from the -3.8% contraction recorded in the first quarter of the year. The latest data, updated on 16 August 2026, highlight a strong quarter-over-quarter recovery in output.
The figures show that while the first quarter of 2026 marked a significant slowdown compared to the previous period, the second quarter has instead delivered a powerful upswing. On a quarter-over-quarter basis, the “actual” reading compares the Q2 performance directly to Q1, contrasting with the “previous” figure, which measured Q1 against the final quarter of the prior period.
This swing from negative to robust positive growth underscores the volatility in Israel’s recent economic trajectory and will be closely watched by investors and policymakers assessing the durability of the recovery through the rest of 2026.
