Israel’s economy rebounds in wake of Gaza war, grows 14.1% in Q1

By Thomson Reuters May 16, 2024 | 5:06 AM

JERUSALEM (Reuters) – Israel’s economy recovered sharply in the first quarter of 2024 after a steep contraction in late 2023 that followed the start of war in Gaza with Palestinian Islamist group Hamas last October.

The Central Bureau of Statistics said in an initial estimate on Thursday that gross domestic product (GDP) grew an annualised 14.1% in the January to March period, just shy of a Reuters consensus of 15.3%.

Growth was led by a rebound in consumer spending and renewed investment, particularly in residential building.

The war has raged in Gaza since Hamas’ Oct. 7 cross-border attack on southern Israel.

Fourth-quarter GDP was revised to a 21.7% contraction from a prior estimate of a 21.0% shrinkage in economic activity.

(Reporting by Steven Scheer; Editing by Toby Chopra)