Israel’s economy grew 3.4% in Q1 as war against Hamas weighs

Israel’s economy grew moderately in the first three months of 2025, as the war in Gaza against Hamas continues to take its toll. The Central Bureau of Statistics said in an initial estimate on Sunday that gross domestic product grew by an annualised 3.4% in the January to March period from the fourth quarter, largely in line with a 3.5% consensus in a Reuters poll. On a per capita basis, GDP gained 2.2% in the first quarter.