The Israeli economy grew by 3.4 %, on an annual basis, in the first quarter of 2025, according to the initial estimate of the Central Bureau of Statistics. The GDP of the individual increased by 2.2 %, on an annual basis, which is a fan number after the decrease in 2024.
However, despite relatively positive growth, private consumption decreased by 5 %, on an annual basis. Special consumption of the individual decreased by a larger rate, with a decrease of 6.1 %, on an annual basis. The decrease in private consumption at the beginning of 2025 represents a reflection of the direction last year, after an increase of 4.1 % in the fourth quarter of 2024.
Related articles
Israel’s economy grew by 1 % in 2024, above expectations
Israel’s financial deficit for the seventh month in a row narrows
Israel Forex reserves were re -evaluated at the high record
Low consumption is often seen as consumer confidence and increased concerns about the economic future. In the case of the first quarter of 2025, part of the decline is due to the submission of purchases to the previous quarter, due to the tax changes that came into effect at the beginning of the year.
The most dramatic decrease in spending on individual sustainable products, which was reduced by 66.5 %, was on an annual basis. The main factor behind this was the slowdown in the purchase of cars, after the sharp jump was recorded in the fourth quarter of 2024, due to the progress of purchases due to the tax changes that came into effect at the beginning of 2025.
At the same time, spending on semi -permanent goods of the individual (clothes, shoes, home textiles, entertainment and entertainment products) decreased by 21.4 % on an annual basis. However, the current consumption of the individual (food, drinks, personal services, housing, fuel and electricity) has already registered a slight increase of 4.1 %.
The business sector leads growth
The GDP of the Business Sector in the first quarter has grown by 4.4 % of the corresponding quarter of 2024, a number indicating a specific recovery for the private sector, after a decrease of 0.7 % in 2024.
On the other hand, the state’s general consumption spending a slight decrease by 0.2 % on an annual basis – a change in direction, after a 8.8 % jump, on an annual basis, registered in the fourth quarter 2024. Defense spending decreased by 15.6 % in the first quarter of 2025 on an annual basis on a basis of 49.2 % on an annual basis in its previous quarter.
It was published by Globes, Israel Business News – En.globes.co.il – on May 18, 2025.
© Copy Publish Publisher Itonut (1983) Ltd. , 2025.
The post Israeli economy grew at 3.4% in Q1 2025 first appeared on Investorempires.com.
