According to the latest data from the Central Bureau of Statistics, despite the negative effects of the war with Hamas and tensions with Hezbollah, the Israeli economy recorded growth of 1% in 2024, exceeding most forecasts.
According to the published figures, the main driver of this expansion was the 13.7% increase in public spending, driven by military and defense needs.
Although GDP growth in 2024 was lower than the 1.8% recorded in 2023 and the 6.3% in 2022, the figures exceeded the initial estimates of the Bank of Israel, which projected a growth of 0.6%, and the Ministry of Finance, which predicted only 0.4%.
Furthermore, the increase in public spending was dominated by a 43.3% increase in defence, while investment in fixed assets fell by 5.9% and a 5.6% decline was recorded in exports.
Although the business sector had suffered a contraction in previous months, it achieved growth of 3.1% in the fourth quarter, reflecting a slight reactivation of economic activity.