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Israel Q2 GDP Growth Revised Upward to 15.4% Annualized

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ILGDPGA15.40 —

Israel's economy expanded at an annualized rate of 15.4% in the second quarter of 2026. The latest figures mark an upward adjustment from the 14.9% growth recorded in the second estimate, returning output to the initial level reported for the period. The strong bounce follows a revised 1.5% contraction in the first quarter of the year.

The economic rebound was supported by robust trade performance and increased public spending. Exports excluding startups and diamonds climbed 17.7%, improving from the previous estimate of 16.6%. Government spending growth was also revised higher to 22.4%. However, domestic demand showed minor softening, with private consumption growth adjusted down to 14.6% and fixed asset investment rising by 4.1%.

For the first six months of 2026, annualized economic expansion reached 3.7%, up from prior estimates of 3.5% and 3.2%. Investors will monitor upcoming quarterly reports to see whether consumer spending and business investments can gain momentum alongside government expenditures in the second half of the year.

Key points

  • Israel revised second-quarter annualized GDP growth up to 15.4% from 14.9%, matching the initial estimate.
  • The strong second quarter followed a revised 1.5% economic contraction in the first quarter of 2026.
  • Exports excluding startups and diamonds grew 17.7%, while government spending expanded 22.4%.
  • Private consumption growth was revised down to 14.6%, and investment in fixed assets rose 4.1%.
  • Annualized growth for the first half of 2026 was raised to 3.7% from previous estimates.

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Questions and answers

How much did Israel's economy grow in Q2 2026?

Israel's economy grew at an annualized rate of 15.4% in the second quarter of 2026, revised upward from an earlier estimate of 14.9%.

What drove Israel's GDP growth in the second quarter of 2026?

Growth was primarily driven by a 17.7% increase in exports excluding startups and diamonds, alongside a 22.4% rise in government spending.

What was Israel's economic growth rate for the first half of 2026?

For the first half of 2026, Israel recorded an annualized growth rate of 3.7%, revised up from prior estimates of 3.5% and 3.2%.