The Ministry of Finance has lowered its economic growth forecast for 2025, citing ongoing military operations and regional instability. The new projection reduces expected growth from 3.6 percent to 3.1 percent, reflecting concerns over the prolonged conflict in Gaza and recent military actions in Iran. Despite this, the Ministry raised its forecast for 2026, anticipating a strong recovery with growth of 5.1 percent. However, experts note that the forecasts may already be outdated due to recent government decisions to expand military operations, which could further impact economic prospects.

Original article source: https://en.globes.co.il/en/article-treasury-cuts-israels-2025-growth-forecast-1001518613
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