(May 26, 2020 / JNS) Israel’s economy contracted by around 7.1 percent in the first quarter, the country’s Central Bureau of Statistics announced on Monday.
This was the first quarterly contraction of the country’s gross domestic product (GDP) since 2012, according to Reuters.
The contraction is mainly being attributed to the impact of the coronavirus pandemic, which affected trade, investment, and consumer and government spending.
Private spending dropped 20.3 percent and investment in fixed assets fell by 17.3 percent, while exports fell by 5.9 percent from January to March, according to the report. GDP contracted by 4.6 percent without including tax income on exports.
The fourth-quarter GDP growth rate in 2019 was at 4.6 percent as the economy grew 3.5 percent overall last year.
Israel’s Finance Ministry warned in late March that the shutdown of Israel’s economy due to the coronavirus pandemic would come at a cost of up to NIS 130 billion ($36 billion), which is 10 percent of the nation’s GDP.
Support Jewish Journalism
with 2020 Vision
One of the most intriguing stories of the sudden Coronavirus crisis is the role of the internet. With individuals forced into home quarantine, most are turning further online for information, education and social interaction.
JNS's influence and readership are growing exponentially, and our positioning sets us apart. Most Jewish media are advocating increasingly biased progressive political and social agendas. JNS is providing more and more readers with a welcome alternative and an ideological home.
During this crisis, JNS continues working overtime. We are being relied upon to tell the story of this crisis as it affects Israel and the global Jewish community, and explain the extraordinary political developments taking place in parallel.
Our ability to thrive in 2020 and beyond depends on the generosity of committed readers and supporters. Monthly donations in particular go a long way in helping us sustain our operations. We greatly appreciate any contributions you can make during these challenging times. We thank you for your ongoing support and wish you blessings for good health and peace of mind.