The Israeli economy grew by just 1.2% in the second quarter of 2024, significantly below the 3% growth forecast by analysts at the Tel Aviv Stock Exchange.
Figures released by the Central Bureau of Statistics showed that Israel's gross domestic product (GDP) expanded by 1.2% in the April-June period.The modest rise in GDP was primarily driven by an 8.2% increase in government spending, which offset a 1.9% decline in business production, the figures showed.
This lower-than-expected growth comes after the economy expanded by 1.4% in the first quarter of 2024, indicating a slowdown as the year progresses.
The data also showed a 0.4% decrease in GDP per capita during the second quarter, reflecting a deteriorating economic environment.
The downturn was further evidenced by a sharp drop in both exports and imports, which fell by 7.1% and 7.3%, respectively, year-on-year.
This decline suggests that manufacturers and exporters were significantly impacted, while the reduction in imports signals a weakening demand within the Israeli economy.
The economic slump coincides with rising regional tensions over Israel's ongoing offensive on the Gaza Strip, which has killed nearly 40,100 people and injured over 92,600 others since last Oct. 7.
Israel is accused of genocide at the International Court of Justice (ICJ), which ordered it to immediately halt its military operation in the southern city of Rafah, where more than 1 million Palestinians had sought refuge from the war before it was invaded on May 6.
