Israel’s economy slumps 19.4% in the fourth quarter as war takes a toll

Credit: Ron Shoshani

Israel’s output contracted sharply in the final three months of 2023, falling for the first time in nearly two years, as the war with Hamas takes a heavy toll on the economy.

Gross domestic product (GDP) plunged 19.4% on an annualized basis compared with the July-to-September quarter, when it grew by a revised 1.8%, Israel’s Central Bureau of Statistics said Monday in its initial estimate.

The worse-than-expected decline was driven by a 26.9% drop in private consumption, as confidence plummeted following the October 7 attacks and households cut back on spending.