Israel's GDP grew by 12.4% in the third quarter, despite the impact of conflicts.

Israel's economy recorded a strong rebound in the third quarter, with GDP growing by 12.4% compared to the previous quarter, according to data from the Central Bureau of Statistics. This growth exceeded Reuters' estimates of 8% and was fueled by robust consumption (+23.0%), exports (+23.3%), and investments (+36.9%). Government spending increased by 4.4%. Economist Jonathan Katz emphasized that this data reflects a rapid recovery after the conflict with Iran, which affected the economy in June. However, the war in Gaza, which began after the Hamas attack on October 7, continues to impact the economy, with up to 300,000 mobilized civilians and absentees from work. An acceleration of the economy is expected, estimated at 5% in 2026. Economic resilience has contributed to the rise of stock indices in Tel Aviv and the appreciation of the shekel by 11% against the dollar. Additionally, annual inflation was 2.5% in October, which could prompt the Bank of Israel to lower short-term interest rates.