Israel's GDP grows 14.1% in first quarter of 2024

Israel’s gross domestic product (GDP) grew in the first quarter at an annual rate of 14.1%, according to the Central Bureau of Statistics’ first estimation, published Thursday.

The growth was 3.3% at the quarterly rate, according to this estimation.

When comparing the first quarter of 2024 to the last quarter of 2023, there was also an annual increase of 26.3% in private consumption, 7.1% in public spending, and 32.7% in the import of goods and services, according to the CBS report.

Public spending remains high

There was also a drop of 10.4% annually in the exports of goods and services not including diamonds and exports from start-ups in this quarter.

Public spending continued to grow moderately in 2024’s first quarter after it spiked in the fourth quarter of 2023, meaning public spending is still abnormally high, the bureau said.

The sharp increase in GDP was attributed by the CBS to a significant increase in private consumption and investments in fixed assets after large drops in the fourth quarter of 2023. They have yet to return to pre-war levels, it said.

First estimate numbers are still heavily impacted by the influence of the Israel-Hamas war on Israel’s economy, including from the large draft of reservists, payments for housing for evacuees, the shortage of workers in the construction industry, and more, the CBS said.