After the war with Iran: GDP surged 15.4% in the second quarter

The Central Bureau of Statistics released its first estimate: gross domestic product surged 15.4% in the second quarter of 2026, after a 3.8% decline in the first quarter due to the war with Iran. On a quarterly basis, GDP rose 3.6%. In the first half of 2026, GDP grew 3.2% compared with the second half of 2025. Private consumption rose 14.7%, exports 25.2%, and investment in residential construction 19.4%.

The Central Bureau of Statistics published today (Sunday) its first estimate of gross domestic product for the second quarter of 2026, according to which GDP surged 15.4% on an annualized basis. The surge is attributed to the end of the direct war between Israel and Iran (Operation Roar of the Lion) in the first quarter, when GDP fell 3.8%. On a quarterly basis, GDP rose 3.6%. Comparing the first half of 2026, when the war took place, with the second half of 2025, when Operation Like a Lion occurred, GDP rose 3.2%. Among the components of growth: private consumption expenditure rose 14.7% on an annualized basis, public consumption surged 19.5%, exports of goods and services rose 25.2%, investment in residential construction rose 19.4%, and GDP per capita rose 14.0%. The data are based on a preliminary estimate, and the CBS will publish additional estimates until the final change is determined.