---
title: "Israel's economy shrinks in first quarter but seen rebounding after Iran war"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286675083.md"
description: "Israel's economy contracted at an annualized rate of 3.3% in Q1 2026 due to the war with Iran. However, growth is anticipated to rebound if the conflict does not escalate further, according to the Central Bureau of Statistics."
datetime: "2026-05-17T14:13:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286675083.md)
  - [en](https://longbridge.com/en/news/286675083.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286675083.md)
---

# Israel's economy shrinks in first quarter but seen rebounding after Iran war

By Steven Scheer JERUSALEM, May 17 (Reuters) - Israel's economy began 2026 with a slowdown, hit by war with Iran, but growth is expected to recover as long as the conflict does not reignite. Gross domestic product contracted at an annualised rate of 3.3% in the first three months of 2026, the Central Bureau of Statistics said on Sunday, less severe than a 4% drop forecast in a Reuters poll of

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