The war against Iran increased Israeli GDP by 3.5% in the second quarter

The war against Iran cost Israel a lot … even if it only lasted 12 days. In any case, this is what the last figures of the Gross Domestic Product of the Hebrew State, published on Sunday, August 17 for the country’s central statistics (BC), testify. In the second quarter of 2025, in fact, Israeli GDP fell by 3.5% when 3.1% arose at the beginning of the year.

Fall in consumption, exports and investments

It should be said that the prolonged closure of airspace caused an almost complete insulation of the Hebrew state. Inevitably, GDP decreases, as well as the consumption of households that decreased by 4.1%. Investments and exports respectively 12.3 and 7% according to the BCS.

As reported The echoesThe last time that the Israeli GDP had fallen significantly was in the last quarter of 2023, which corresponded to the beginning of the war in the Gaza Strip after the massacres of October 7. And the conflict had cost very expensive since GDP had fallen for no less than 21% in this period.

Resilience

According to The Economic Daily, Israel has had to pay no less than $ 88.7 billion to finance its defense and offensives so far. Therefore, the Israeli economy has shown a certain resistance, since it partially straightened the bar with an annual growth of 1% in 2024. This remains far from the results of before the war, when the growth had culminated in 6.3% in 2022. A manager of the Bank of Israel remains optimistic for the economic future of the Hebrew state.

In addition, the Israeli economy must be transported by high technology, including cybersecurity and defense. Exports in these sectors could break the records in 2025 thanks to the orders of the air defense systems: “These teams have proven to be on the ground,” said the Israeli army that specifies the echoes that 87% of the Iranian missiles were intercepted.

But while the security firm has given the green occupation of the city of Gaza to eradicate what is left of the Military A apparatus of Hamas, this offensive could weigh a lot again about the accounts of the Hebrew state. The operation of fact Rebile to tens of thousands of reservists and expenses in weapons and timers, whose addition is estimated at several tens of billions of dollars by the Israeli Ministry of Finance.