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Israel cuts growth forecast for 2026 due to operations against Iran

Israel's Finance Ministry cuts 2026 GDP growth forecast from 5.2% to 4.7% due to ongoing military operations against Iran.

Israel's Finance Ministry has revised down its 2026 economic growth forecast from 5.2% to 4.7% due to disruptions caused by ongoing strikes against Iran. The revision reflects the impact of large-scale mobilization of reserve forces, temporary shutdowns in parts of the economy, a short-term drop in private consumption, and rising geopolitical uncertainty that is weighing on investment and foreign trade. The government also approved additional defense spending and raised the budget deficit ceiling to accommodate the security situation.
Status
active
Location
Israel
Date added
2026-03-25 13:49 UTC
Last updated
2026-03-25 13:49 UTC
Source
https://www.timesofisrael.com
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