Israel’s economy has shown a solid recovery in the second quarter, mainly thanks to lifting the restrictive measures against the corona pandemic. In the first quarter of the year, however, there was still a contraction.
According to the Israeli statistical office, the economy grew by 15.4 percent based on a so-called annualized calculation, where the quarterly performance is imaginary stretching over a whole year.
In the first quarter, the contraction amounted to an adjusted 1.4 percent. Previously, a decline of 5.8 percent was reported for that period.
With the lifting of the restrictive measures, consumers started to spend more, while business investment also increased. The number of infections has recently risen sharply in Israel because of the Delta variant, despite the vigorous vaccination campaign.
As a result, the measures are being tightened again, including a mouth cap obligation in many places.