Israel sees sharp decline in GDP growth in Q2

Jerusalem, Aug 18 (IANS) Growth figures issued on Sunday by Israel's Central Bureau of Statistics indicated a deep fall in the state's economy following a sharp rise in the first quarter.

Israel's GDP rose in the second quarter by 1.2 per cent compared to the GDP in the first quarter, which had risen by 17.3 per cent, Xinhua news agency reported.

On an annual basis, a 1.4 per cent shrink was registered in the Israeli GDP compared to the same period last year.

The data also showed that private consumption spending in Israel increased by 12 per cent in the second quarter, much lower than the 26.3 per cent rise recorded in the first quarter.

Gad Lior, a senior analyst at the Yedioth Ahronoth newspaper, told Xinhua that the low growth figures indicate that the Israeli economy has not recovered from the consequences of the Hamas attack on October 7 last year.

The worrying trend was also reflected in the import of goods and services, decreasing by 11.1 per cent in the second quarter, after an increase of 32.7 per cent registered in the first quarter.

Israeli exports of goods and services, excluding diamonds and start-up companies, decreased in the second quarter by 7.1 per cent, following a 10.4 per cent decrease in the first quarter.

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 October 7, 2023.

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.

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