GDP rebounds sharply in July–September quarter as consumer spending and investment surge

Israel’s economy rebounded in the July-September quarter, with gross domestic product jumping by an annualized 12.4%, driven by consumer spending as well as business sector and investment growth, according to a preliminary estimate by the Central Bureau of Statistics.

The GDP figure for the period came above analysts’ expectations of an expansion of 6%-8%. Economic growth contracted in the previous April-to-June quarter, shrinking 4.3% as the war with Iran led to a shutdown of many businesses and hurt consumer spending.

In the reported third quarter of 2025, consumer spending increased by 23%, while exports of goods and services rose 18.9%, and government spending was up 4.4%, according to an initial estimate by the statistics bureau. Investment in fixed assets leaped 36.1% and business output grew 14.9%.