JERUSALEM, May 17 (Xinhua) -- Israel's gross domestic product (GDP) shrank by an annual rate of 3.3 percent in the first quarter of 2026 compared to the previous quarter, according to figures issued by the state's Central Bureau of Statistics on Sunday.
This marks a reversal after Israel's economy grew 2.9 percent in the fourth quarter and maintained that pace through 2025.
Business activity contracted at a 3.1 percent annualized rate in the first quarter, reversing a 5.4 percent expansion, while private consumption dropped 4.7 percent after falling 4.6 percent in the previous quarter.
The bureau attributed the contraction to the impact of the war with Iran, which lasted from Feb. 28 to a ceasefire on April 8.
Analysts said the GDP growth rate was significantly affected by the extensive military reserve call-ups and the fact that most Israelis stayed at home during the war. ■
