(Bloomberg) -- Israel’s growth slowed more than initially projected over the second quarter, as war with Hamas, nearing its one-year anniversary, and tensions with Hezbollah cloud the economy.
Gross domestic product rose an annualized 0.7% in seasonally adjusted terms compared to the first quarter, according to data published by Israel’s Central Bureau of Statistics on Monday. Earlier figures published last month said the figure was likely 1.2%.
One of the biggest drivers of the slowdown was exports, which declined by 8.3%, excluding diamonds and startup companies, versus an initial projection of 7.1%.
Investments in fixed assets improved and are estimated to have grown 4%. That was not enough to offset a slowdown in imports. Private consumption grew 11.4%, down from the initial estimate of 12%. Government consumption, mainly associated with the needs of war, rose 8.2%.
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