Israel's economy shows recovery with 3.4 pct growth in Q1

JERUSALEM, May 18 (Xinhua) -- Israel's gross domestic product (GDP) expanded by 3.4 percent at an annual rate in the first quarter of 2025, marking accelerated growth from the previous quarter's 1.9 percent, the Central Bureau of Statistics said Sunday.

The latest quarterly figure is close to the central bank's revised 2025 growth forecast of 3.5 percent.

GDP per capita in the first quarter also rebounded, with an annualized growth rate of 2.2 percent, reversing 2024's negative trend, the bureau said.

The moderate recovery was fueled by an annualized 8.7 percent surge in fixed-asset investment and a 6.2 percent rise in exports, excluding diamonds and startups, according to the bureau's national accounts report.

It also reported an annualized 2.5 percent increase in imports, excluding diamonds and startups.

The data has allowed the central bank to maintain its base interest rate, despite April's 1.1 percent monthly inflation spike, it said. Enditem