The Israeli economy shrank by 7.8% in the second quarter of 2020, according to new data released by Israel’s Central Bureau of Statistics, the worst economic contraction suffered by the Jewish state in its 72-year history.
Private consumption, which plummeted by an annualized rate of 24 percent in the first quarter, fell 43.4% (annualized) in the second quarter.
Exports fell 29.2% (annualized), while, imports fell by nearly 42%.
Prime Minister Binyamin Netanyahu discussed the state of the Israeli economy at the weekly cabinet meeting Sunday, saying that Israel could have been hit far harder by the coronavirus crisis, noting that much of Europe suffered even sharper declines.
“We just received very good economic news. The Central Bureau of Statistics published that the decline in our GDP in the second quarter of 2020 was 7.8%, which is half the decline in the European states; it is almost the lowest in the world. South Korea is ahead of us and maybe two or three other countries.”
“This is the result of the responsible policy that we have undertaken, which not only reduced the number of deaths in Israel but also the magnitude of the blow to the Israeli economy.”
“We will continue to work for your livelihoods, for our economic future and for your health.”
Netanyahu also touted the approval of a new economic recovery program, intended to stimulate the economy and create jobs.
“In the Cabinet, we have just approved an additional NIS 8.5 billion ($2.5 billion) in incentives for our economy and to create jobs. I know that there is still great economic distress – we are working around the clock to make things easier for you, citizens of Israel.”