The twelve days of war against Iran in June had economic consequences for Israel. According to data from the Central Bureau of Statistics, Israel’s GDP decreased by 3.5% in the second quarter of 2025. The conflict with Iran had a significant impact on Israel’s economy, causing a noticeable contraction in the GDP. The effects of the war were felt across various sectors, leading to a decline in economic activity and output. The Central Bureau of Statistics’ report highlighted the toll that the conflict took on Israel’s economy, with the GDP shrinking by 3.5% during the challenging period.
Israel’s GDP Falls by 3.5% in the Second Quarter Due to the War Against Iran
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