Israel’s Q3 GDP Surges 12.4% as Consumer Spending and Exports Rebound
Israel's economy expanded at an annualized rate of 12.4% in Q3, sharply reversing a 4.3% contraction in Q2. The rebound followed the resolution of June's military clashes with Iran and the gradual return of workers from Gaza-related reserve duty. Private consumption jumped 23% as retail and travel activity normalized, while exports ROSE by the same margin.
Fixed investment soared 36.9% as businesses ramped up capital expenditures, with government spending maintaining a 4.4% growth pace. The broad-based recovery propelled Tel Aviv stocks to record highs, with the benchmark index gaining 43% year-to-date. The shekel strengthened 11% against the dollar in 2023.