ALBAWABA – The Israeli economy recorded a growth of approximately 3.8% in the third quarter of 2024, despite the ongoing conflict with Hamas and Hezbollah in Gaza and Lebanon.
Economy in Israel grows amid war
The Israeli economy suffered significantly since October 2023, but it saw a strong growth of about 3.8% in the third quarter of this year.
The Israel Central Bureau of Statistics (CBS) said the country’s yearly gross domestic product (GDP) increased by 3.8% in the period between July to September of 2024, surpassing the expected 2.9% growth, according to Reuters.
Israel's inflation rate remained stable at 3.5% in September, though it exceeded the government’s target range of 1% to 3% despite the ongoing war in Gaza and Lebanon. (Shutterstock)
Notably, the growth in the country’s GDP was driven by an 8.6% increase in consumer spending and a 1.7% rise in exports.
Israeli inflation and war
It is worth mentioning that the war in the Gaza Strip started on October 7, 2023, and later expanded to include Hezbollah in Lebanon.
Despite the ongoing regional conflicts, Israel's inflation rate remained stable at 3.5% in September, though it exceeded the government’s target range of 1% to 3%.
Additionally, the Central Bank of Israel is set to discuss interest rates next week. Previously this year, the country reduced interest rates in January and kept them unchanged in February, April, May, July, August, and October due to the ongoing war, geopolitical tensions, rising prices, and fiscal policy considerations.
