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Israeli economy contracts 3.3%
War ignited by U.S.-Israeli strikes on Iran pushed Israel's economy into contraction in the first quarter of 2026.
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Mehmet Yılmaz
· 2 min read
The Israeli economy contracted 3.3% on an annual basis in the first quarter of 2026, dragged down by the fallout from U.S.-Israeli cooperative strikes on Iran.
Escalating regional tensions and surging military expenditure weighed heavily on the country's economic performance. Continued wartime conditions could keep the Israeli economy under pressure in the months ahead.
Sources — how we know this
- PrimaryAnadolu Ajansı (TR)