Israel’s Q1 GDP Contracts 3.3% as Iran War Shutdowns Last More Than 1 Month

7 articles · Updated · Bloomberg · May 17

Israel’s economy shrank at a 3.3% annualized, seasonally adjusted rate in the first quarter, the statistics bureau said Sunday, a deeper drop than economists had expected.
More than a month of security-related business shutdowns tied to the war with Iran drove the contraction, underscoring how the conflict hit domestic activity.
A Bloomberg survey of seven economists had pointed to a 2% decline, while the finance ministry had estimated an even steeper 9.5% annual drop.
Earlier data showed the weakness was broad-based: consumer spending fell 4.7%, exports dropped 3.7%, government spending slipped 4.8%, and GDP per capita contracted 4.5%.

Israel’s economy shrank yet its markets hit record highs. Is this a sign of true resilience or a conflict-fueled bubble?

With the Strait of Hormuz closed and the dollar challenged, is the Iran war reshaping the global economic order for good?