Israel’s GDP growth slows to 4.0% in Q4 after post-war rebound

Israel's economy experienced a slowdown in the fourth quarter with GDP growth decreasing to 4.0% following a post-war rebound, according to data released by the Central Bureau of Statistics. This moderation in economic expansion comes after Israel had shown stronger recovery signs in the previous quarters following the conflict that had initially disrupted economic activities. The 4.0% growth rate, while still positive, represents a deceleration from the more robust performance seen earlier in the recovery period, reflecting the challenges of sustaining momentum after a conflict. Economic analysts suggest that the slowdown may be attributed to various factors including reduced government spending, normalization of consumer behavior after the initial surge, and potential global economic headwinds affecting export-oriented sectors. Despite this moderation, Israel's economy continues to demonstrate resilience, with the government maintaining its overall growth forecast for the year, though with tempered expectations compared to initial projections.