Israel’s economy experienced biggest slowdown among OECD countries from April to June

Israel’s economy suffered the biggest slowdown in the April to June period among 38 member countries in the Organisation for Economic Co-operation and Development (OECD), as the ongoing war with the Hamas terror continues to take a heavy toll on the country.

Israel “experienced the most significant slowdown” as growth slowed from 4.1 percent in the first three months of the year to 0.3% in the second quarter, the OECD says in a report. Gross domestic product (GDP) in the OECD was steady, expanding by 0.5% in the second quarter of 2024, the same pace as in the previous quarter, according to initial estimates. Growth in the US economy rose from 0.4% in the first quarter to 0.7% in the second quarter, the data shows.

In May, the OECD cut its growth forecast for the Israeli economy for this year to 1.9% from 3.3% and projects 4.6% in 2025. The Bank of Israel lowered its 2024 growth forecast to 1.5%, while the Finance Ministry sees growth of 1.9% for this year.