Israel’s economy is recovering from the effects of the recent war with Iran more slowly than initially estimated, according to updated figures released by the Central Bureau of Statistics.

The CBS now estimates that Israel’s economy grew at an annualized rate of 14.9% during the second quarter of 2026 compared with the first quarter, slightly below the 15.4% growth initially reported last month. ([mako][1])

The sharpest downward revision was recorded in exports of goods and services. The CBS now estimates exports increased by 16.6%, significantly below the previous estimate of 25.2%.

Investment in machinery and equipment was revised even more dramatically. An earlier estimate showing growth of 23.5% was replaced by a revised figure showing a 6.5% decline.

Those weaker figures were partially offset by upward revisions to private and government consumption, as well as investment in non-residential construction.

Despite the revisions, the overall reduction in the estimated annualized growth rate was relatively modest — half a percentage point.

CBS officials noted that revisions are a normal part of the economic data process, although the size of some of the changes in individual categories was significant.

There was also more positive news when examining Israel’s economy over a longer period. Growth during the first half of 2026 compared with the second half of 2025 was revised upward from 3.2% to 3.5%.

The CBS considers the broader comparison particularly useful because it helps smooth out the dramatic economic fluctuations caused by the war.

A third and final estimate for second-quarter economic growth is expected to be released next month.

(YWN World Headquarters – NYC)