Israel’s economy shrank by an annualized 3.5 percent from April to June, as the 12-day war with Iran in June hurt consumer spending, exports, and investment, a preliminary estimate by the Central Bureau of Statistics says.
In the second quarter of the year, private spending decreased by 4.1%, while exports of goods and services declined by 3.5% and government spending fell by 1%, according to an initial estimate by the statistics bureau. Investment in fixed assets dropped 12.3% and business output slumped 6.2%.
The war against Iran, which ended with a ceasefire on June 24, dented the economy and disrupted key industries, while thousands of workers were called into military reserve duty, affecting individuals and businesses.
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