Israel’s Economic Growth Slows to 0.3% in in Q2

Weighing down on growth was an annualized decline of 12.5% in exports of goods and services and a 3.8% drop in investment in fixed assets

Shoppers packing the Azrieli Center mall in Tel Aviv.
Ofer Vaknin

Israel’s economic growth slowed to a near halt in the second quarter, with gross domestic product expanding at an annualized rate of just 0.3%, the Central Bureau of Statistics said on Sunday.

Weighing down on growth was an annualized decline of 12.5% in exports of goods and services and a 3.8% drop in investment in fixed assets. Consumer spending rose a paltry 0.9% and government spending by just 0.4%.

The second-quarter figure meant that the economy has been growing at a rate of roughly 2.5% over the last 18 months, despite big swings caused by the Gaza war in the summer of 2015 and a sharp 6.2% jump in growth in the final quarter of that year.