JERUSALEM (Reuters) – Israel’s economy grew slower in the second quarter due to the ongoing conflict in Gaza with Hamas. GDP increased by just 0.3% annually from April to June, revised down from 0.7% a month ago and 1.2% earlier in August.
The economy was supported by consumer spending and state investment, though exports declined.
Last week, the Bank of Israel reduced its 2024 growth forecast to 0.5%, down from 1.5%.
Inflation is rising, prompting concerns about potential interest rate hikes, though the central bank maintained rates last week for the sixth consecutive meeting.
The first quarter’s GDP growth remained unchanged at 17.2%, recovering from a decline in late 2023 when the war started.
