Israeli GDP shrinks 28.7 pct in Q2, sharpest drop in 40 years

Source: Xinhua | 2020-08-17

Israel's GDP contracted by annualized 28.7 percent in the second quarter of 2020 compared to the first quarter of the year, according to a report released by the state's Central Bureau of Statistics on Sunday.

This decline, sharpest in the last 40 years, is mainly due to the effects of the coronavirus pandemic and the steps taken by the government to stop the spread of the virus.

This figure means an 8.1-percent damage to GDP on a quarterly basis, far more severe than the estimates of the Israeli government.

According to the report, a sharp decline of an annualized 43.4 percent was recorded in private consumption expenditure in the second quarter, while private consumption per capita fell by 44.2 percent.

A significant 41.7-percent drop in imports of goods and services was seen in the second quarter, while goods and services exports fell by 29.2 percent.