JERUSALEM (Reuters) – Israel’s economy grew slower in Q2 due to the ongoing war in Gaza with Hamas. The GDP increased by only 0.3% from April to June, revised down from 0.7% and 1.2% reported earlier.
Consumer and government spending helped the economy, but exports fell. Last week, the Bank of Israel lowered its 2024 growth forecast from 1.5% to 0.5%.
With the economy weakening, inflation has risen, and the central bank is considering raising interest rates, although it kept rates unchanged for the sixth consecutive meeting. Q1 GDP growth remained at 17.2% as the economy rebounded from a sharp contraction in Q4 2023 when the war began.
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